Korean Media: From 0.8% to 8.0%, the Korean Market Is Shedding Its "No Chinese Cars" Label!
On October 9, South Korean media outlet *Herald Economic* published an article stating that for years, Chinese automobiles have been perceived in the Korean market as synonymous with “cheap but unattractive to consumers.” Despite their competitive pricing, skepticism regarding quality, safety, and brand reputation has long posed a significant barrier to entry into Korea’s automotive sector.
Yet these obstacles are now being systematically overcome, as Chinese automakers steadily expand their presence across the country. Having established a foothold in the electric vehicle (EV) segment, they are now extending operations into hybrid and premium markets. Notably, they have adopted a strategy allowing consumers to experience Chinese vehicles through car rental and car-sharing services.
Price is no longer the sole competitive advantage of Chinese cars. The reasons once cited by Korean consumers for rejecting Chinese vehicles are gradually diminishing.
Global data already reflects this shift. In non-Chinese markets, the share of Chinese EV brands rose to 22.2% in the first half of this year—tripling over four years. In Brazil, Indonesia, and Thailand, the figure exceeds 90%. In South Korea, the market share of Chinese EVs surged from 0.8% in 2024 to 8.0% in the first seven months of this year—a tenfold increase.
BYD is leading the trend. The company entered the South Korean passenger vehicle market last year and launched its mid-size SUV, the Seal 6, at the Busan Mobility Show in June, priced at approximately 37.5 million KRW, thereby expanding its product lineup into plug-in hybrid vehicles.
ZEEKR, Geely’s premium electric vehicle brand, introduced its mid-size electric SUV, the ZEEKR 7X, to the Korean market and secured over 1,000 orders within a single month. With Xpeng Motors and Chery Automobile also preparing to enter the market, the push by Chinese automakers is evolving from isolated brand entries to a comprehensive coverage across all market segments.
This is not the full picture. Chinese companies are actively addressing Korean consumers’ concerns about sales and service networks. As of July, BYD had established 34 showrooms and 20 service centers in South Korea, while ZEEKR opened nine service centers to strengthen its support infrastructure.
In addition, car rental and car-sharing platforms are emerging as new channels for market entry. This approach underscores a key reality: while consumers may hesitate to spend tens of millions of won on an unfamiliar Chinese-made vehicle, renting one presents a far lower barrier to trial.
The strategy enables initial test drives, familiarization with the vehicle, and eventual purchase. Effectively, Chinese automakers are shifting focus beyond price competition toward reshaping consumer perception. If users directly experience performance and build quality exceeding expectations, preexisting skepticism toward Chinese manufacturing may begin to erode.
The South Korean automotive market remains fiercely competitive yet highly attractive. Global players such as Hyundai and Kia have long held strong positions, and consumer expectations remain high. Thus, any success achieved by Chinese automakers in this market would serve as a compelling benchmark for assessing whether Chinese automotive competitiveness has transcended cost advantages.
The ambition of Chinese firms extends beyond selling additional units. Their ultimate goal is to dismantle the final psychological barrier among Korean consumers: “Never buy a cheap Chinese car.” Once this perception collapses, the dominance of Hyundai and Kia in the domestic market could be fundamentally challenged.
Original source: toutiao.com/article/1878537579827403/
Disclaimer: The views expressed in this article are those of the author alone.