Chinese EV Maker BYD Officially Enters South Korean Market
Seoul, woensdag, 15 januari 2025.
Chinese electric vehicle company BYD is set to enter the South Korean automotive market, raising tensions in the local industry due to increased competition from China.
BYD’s Market Entry Strategy
BYD (Build Your Dreams), traded on the Hong Kong Stock Exchange (1211.HK) [GPT], will officially launch its operations in South Korea on January 16, 2025 [1]. The company plans to introduce several electric vehicle models, starting with the compact SUV ‘Atto 3’, followed by the mid-size sedan ‘Seal’, compact SUV ‘Dolphin’, and SUV ‘Sealion 7’ throughout the year [1].
Product Specifications and Pricing
The Atto 3, which has already completed all necessary Korean certification processes, offers a driving range of 321km on a single charge [1]. The vehicle is expected to be priced in the 30 million won range, with potential consumer prices dropping to the high 20 million won range after government and local subsidies [1]. BYD is also considering offering an 8% discount to offset import duties [1].
Market Competition and Challenges
BYD enters a challenging market environment in South Korea, where the economy is projected to grow by just 1.67% in 2025 [7]. The company’s biggest hurdle will be overcoming consumer skepticism about Chinese vehicles [1]. However, there’s precedent for success - Tesla’s Model Y with Chinese-made LFP batteries sold 15,052 units in the previous year, demonstrating that Korean consumers can embrace Chinese-manufactured components [1].
Service Network and Future Prospects
To address service concerns, BYD has already established a network of dealers across six regions in South Korea, who will manage both sales and after-sales service [1]. Industry experts note that BYD’s entry into the Korean market is not a casual endeavor but rather a carefully planned strategy following their successful expansion into Japan [1]. The company’s premium models, Seal and Sealion, priced in the 40-50 million won range, are expected to compete directly with Hyundai, Kia, and Tesla in the electric vehicle segment [1].