Chinese EVs find fans in Korea, sceptics in Japan

In July, Kim Min-seon, a 48-year-old resident of Seoul, became one of the first in South Korea to purchase an electric vehicle from China's BYD. Her decision sparked controversy, with many questioning her choice, asking if she was "trying to get herself killed." This was unprecedented in South Korea, where Chinese cars were long viewed as inferior. At just $18,500, the compact Dolphin offered BYD an affordable and well-equipped entry into the South Korean market, which was previously untapped by Chinese automakers.

While BYD and other Chinese automakers have made significant strides in South Korea, Japan has been more resistant to their entry. Currently, EVs account for only about 3% of new car sales in Japan, compared to a quarter in South Korea. This disparity can be attributed to the higher adoption rate of EVs in South Korea, where roughly a quarter of new cars sold this year were electric.

Chinese automakers have successfully built dealer networks and adapted their vehicles to local tastes, a strategy driven by both confidence and necessity. China's domestic market is saturated with brands, leaving foreign automakers to seek growth opportunities abroad. BYD has been particularly successful in South Korea, selling over 20,000 vehicles in the first nine months of the year, surpassing combined sales of Toyota and Lexus.

Despite the initial skepticism, South Korean consumers, like Lee Seong-dong, have found BYD's vehicles convincing. He initially had doubts about Chinese cars, but after experiencing the Dolphin firsthand, his perspective changed significantly. However, in Japan, the situation is more challenging. Chinese automakers, including BYD, have only managed a mere 0.1% market share in the country, with BYD selling fewer than 4,000 cars in Japan during the first nine months of the year.

This reluctance is partly due to Japanese consumers' preference for hybrids, the technology championed by Japanese automakers like Toyota. Additionally, strained diplomatic relations between Japan and China have further fueled skepticism towards Chinese cars in the country.