Chinese EVs Surge in South Korea, Threatening Local Makers
A total of 69,513 Chinese electric vehicles were newly registered in South Korea in the first half of this year, a 178.7% surge from the same period last year. The share of Chinese-made vehicles in the overall EV market expanded from 26.8% to 35.0% in just one year, posing a growing threat to the do
In the first half of 2024, Chinese electric vehicle registrations in South Korea surged by an astonishing 178.7%, rising to 69,513 units. This marked a significant 26.8% increase in market share, now accounting for 35.0% of the overall EV market. The rapid growth has put pressure on local automakers, with BYD leading the charge, securing the fourth spot among imported car brands through the first seven months of 2024.
The aggressive pricing strategy of Chinese brands is evident, with BYD's Dolphin compact electric hatchback priced at 24.5 million won, undercutting Hyundai's Casper Electric and Kia's EV3. Despite subsidies, BYD continues to maintain prices around the 20 million won mark. Meanwhile, domestic manufacturers like Hyundai Mobis face skyrocketing costs due to increased semiconductor prices, leading to a 20.8% drop in operating profit.
Korean automakers' profitability woes and the lack of protective barriers, such as high tariffs on Chinese EVs in South Korea, further exacerbate the threat from Chinese competition. The government's gradual reduction of tax credits and export tariffs only worsens the situation. To remain competitive, the domestic industry urgently needs direct policy support for production and investment.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
