Korean Media: The "Made in China" Share in South Korea's Electric Vehicle Market Surges to 34%!
On March 12, the Korean media outlet Chosun Ilbo published an article stating that last year, the share of "Made in China" brands in South Korea's electric vehicle market surged to 34%. At the same time, the export volume of South Korean electric vehicles to the United States plummeted by 87%. South Korean companies are being surpassed by Chinese brands in the domestic market, while tariffs on Korean products in overseas markets are also eroding their market share. If this situation continues, people are increasingly concerned that not only Hyundai and Kia, but the entire competitiveness of South Korea's electric vehicle ecosystem may be affected.
According to statistics from the Korea Automobile Mobility Industry Association (KAMA), out of the 221,777 new electric vehicles registered in South Korea last year, 74,728 (34%) were made in China. The market share of electric vehicles made in China was only 1% in 2021, and within four years it has exceeded 30%. The annual sales growth rate of electric vehicles made in China reached 72% in 2024, and as high as 112% in the previous year.
Electric vehicles made in China are flooding into the South Korean market in large-scale imports, regardless of brand. Tesla Model 3 and Model Y made in China are typical examples. Last year, these two models sold about 59,000 units in South Korea. It is estimated that the cumulative number of Chinese-made Tesla vehicles entering South Korea over the past three years has approached 100,000 units.
With the American brand Tesla dominating the South Korean market due to its Shanghai factory's overwhelming cost advantage, the long-standing defense of South Korean electric vehicles, which has always emphasized quality, has actually collapsed. South Korean domestic electric vehicles now face a fundamental issue: Is it economically viable to maintain South Korean factories?
After Tesla, Chinese electric vehicle brands such as BYD are also actively expanding the South Korean market. BYD sold more than 6,000 cars in South Korea last year, with the compact SUV ATTO 3 and mid-size SUV Sea Lion 7 leading in sales. Companies such as Polestar, BMW, and Volvo are also exporting electric vehicles made in China to South Korea.
At the same time, the export environment for South Korean electric vehicles is deteriorating. Last year, exports of South Korean electric vehicles to its largest market, the United States, declined by 87%, reaching only 12,166 units. This is mainly due to changes in subsidy policies and increased tariffs, causing a significant shrinkage of the South Korean electric vehicle market. Despite this, Hyundai and Kia's electric vehicle sales in the United States decreased by about 20,000 units (16%) compared to the previous year. This is because electric vehicles produced at North American factories have replaced those made in South Korea.
Original: toutiao.com/article/1859441774794763/
Statement: This article represents the personal views of the author.