Chinese EVs win over some in South Korea, but Japan is proving to be a rougher road

In South Korea, electric vehicles (EVs) from China’s BYD have gained some traction among consumers, despite initial skepticism. Kim Min-seon, a 48-year-old resident of Seoul, bought a BYD Dolphin compact in July, dismissing the notion that she was risking her safety by purchasing a Chinese car. The Dolphin was affordable, well-equipped, and most importantly, available. However, Japanese sales of BYD and other Chinese EVs have been slower, partly due to lower EV uptake and a generally more skeptical consumer base.

Chinese automakers have been successful in expanding their presence in South Korea, owing to their ability to build dealer networks and adapt vehicles to local tastes. BYD alone sold over 20,000 vehicles in South Korea during the first nine months of the year, surpassing the combined sales of Toyota and its Lexus brand, according to Carisyou. Local automakers, such as Hyundai and Kia, focus on premium EVs and struggle to offer affordable models for the average consumer.

Japan, on the other hand, has been a more challenging market for Chinese EVs, with fewer than 4,000 BYD vehicles sold in the country during the same period. Foreign brands account for only about 6% of passenger car sales in Japan, and drivers tend to prefer hybrids over fully electric vehicles. The relationship between Japan and China has been strained since the right-wing Prime Minister Sanae Takaichi took office, with a majority of both Japanese and South Korean citizens expressing a negative view of China.

Despite these challenges, BYD remains optimistic about its future in Japan. The company has established over 75 dealerships and plans to expand to 100. However, the market share is not the primary concern for BYD; rather, it is the growth potential. Chery and Xpeng, other Chinese automakers, are also entering the Japanese market, with plans to launch kei cars and luxury vans, respectively.

While consumers like Fumio Kuwabara remain skeptical of Chinese cars' reliability, BYD's success in South Korea may offer a blueprint for entering other markets, including Japan.