China’s electric vehicle giant BYD Co. will make a debut in the South Korean passenger car market next year with premium models in hopes of becoming the first Chinese car brand to steal Korean consumers’ hearts after years of failure by its Chinese peers to meet Korean drivers’ high expectations.
The Shenzhen-based EV maker is set to start selling its passenger EVs in Korea in early 2025 after “through market evaluation,” its Korean operation announced on Wednesday.
BYD Korea said the company is currently setting up the brand’s sales and service network across Korea, hiring staff, undergoing the country’s necessary state evaluations to obtain certifications to sell its cars, setting up marketing strategies and training staff.
Earlier this year, the Korea Economic Daily exclusively reported that the world’s largest EV producer was seeking permits from Korea’s related state agencies to sell its passenger EVs in Korea.
BYD has been selling commercial vehicles such as buses and trucks in Korea since 2016 but not passenger EVs.
Its Chinese rivals have previously attempted to crack the Korean passenger car market, including BAIC Motor Corp.’s KENBO 600, but none has succeeded in winning Korean consumers’ hearts mainly due to their quality and safety issues.
CARS WITH PREMIUM FEATURES
BYD did not disclose which models it will roll out first in Korea but the auto industry expects the Chinese EV giant to bring its midsize EV sedan Seal and electric compact sport utility vehicle Atto 3 to the country.
“We have thoroughly examined (the Korean passenger car market) with employees and partners with diverse experiences to meet the high expectations of Korean consumers,” said Cho In-chul, managing director of BYD Korea’s passenger car division.
“We will strive to become a trusted brand among Korean consumers with our successful global expansion strategy and outstanding technology.”
The BYD Seal is a midsize EV sedan, which is expected to compete with Hyundai Motor Co.’s IONIQ 6 and Tesla Inc.’s Model 3 in Korea.
The BYD Seal runs up to 569 kilometers on a single charge, longer than the Model 3’s 511 km. It is expected to be priced in the mid to high 40 million won ($28,455) range in Korea.
Its best-seller and first global model Atto 3, which can run 420 km on a single charge, is expected to rival Kia Corp.’s EV3 in the country. It is sold at about 44 million won in Australia and Japan but is expected to be priced below that level in Korea.
Depending on its success, BYD is expected to accelerate its advance into Korea with more high-end segment models such as the HAN series or its luxury separate brand Denza cars later, according to sources.
The company has already registered the trademark of Denza in Korea. It has also registered the trademarks of its two EV sedans – the Seal and the hatchback Dolphin – with Korean authorities earlier this year.
BYD has obtained an environmental certification for the Atto 3 from Korea’s Ministry of Environment and is waiting for the same certification for the Seal.
It takes about two to three months for the related evaluation but the process to review the Seal has been taking longer, which, however, is not unusual, said the Korean environment ministry although it is not yet sure when it will issue the certification for the model.
But the Seal has already obtained certifications for its driving range and energy efficiency from Korea’s Ministry of Trade, Industry, and Energy, and its specifications have been already reported to the country’s transportation ministry for domestic sale.
To sell electric models in Korea, foreign automakers need to obtain environmental and safety certifications for their vehicles’ driving range, energy efficiency and battery safety, and undergo an eligibility review for state EV subsidies.
THREAT TO KOREAN EVS?
BYD, which rose to the top in the global EV market last year after beating Tesla, is considered the most formidable rival to Korean EVs, which have been grappling with dwindling demand amid the ongoing EV chasm.
Against the EV chasm, BYD may bring its hybrid models to Korea, said an official in the Korean auto industry.
The Chinese EV giant sold more than 3 million units of environment-friendly cars worldwide in 2023, and it raked in $69.3 billion in global car sales in the first three quarters of this year, up 18.9% from the same period of last year.
But the key to its success in the Korean passenger car market is its car quality, said industry observers.
If it fails to meet Korean consumers’ high expectations for quality and safety, it would follow suit of its Chinese peers who sold only a few hundred units in the country.
In late October, the European New Car Assessment Program (Euro NCAP), which is Europe’s car safety agency, issued a “not recommended” rating to the driver assistance system used in the BYD Atto 3.
By Jung-Eun Shin and Jin-Won Kim
newyearis@hankyung.com
Sookyung Seo edited this article.
