XPeng Inc., often dubbed China’s Tesla, is set to open a local unit in South Korea, where its Chinese electric vehicle peers, BYD Co. and Zeekr Group, are already competing for market share in Hyundai Motor Co. and Kia Corp.’s backyard.
According to sources in the Korean auto industry on Tuesday, the EV maker, one of China’s big five EV brands, set up and registered its Korean business entity under the name of XPeng Motors Korea in June.
The unit is based in Seoul’s Sinjeong-dong, operating out of a shared office space.
Founded in 2014, XPeng has quickly grown into one of China’s leading EV startups, expanding beyond cars into flying vehicles, advanced air mobility, humanoid robotics and artificial intelligence.
At the IAA Mobility 2025 show in Munich in mid-September, XPeng unveiled its new P7 electric sedan, alongside a humanoid robot, highlighting its technological ambitions.
The company is led by Chairman and CEO He Xiaopeng, 47.
CHINA’S EV OFFENSIVE IN KOREA IS SET TO ACCELERATE
XPeng’s arrival is set to further intensify competition in Korea’s EV market, where Chinese rivals are already gaining traction with a broad lineup of small cars, sport utility vehicles and luxury sedans that are backed by a pricing advantage.
BYD, which launched its first model here in January, sold 1,947 vehicles through August, ranking third among imported EVs in the country.
Encouraged by upbeat sales, China’s top EV maker chose Seoul as the debut market for its new Sealion 7 electric SUV, introduced this month.
“South Korea’s relatively well-developed charging infrastructure has caught the attention of foreign EV makers,” said an industry official.
“With China’s market struggling with severe oversupply, Chinese manufacturers are likely to ship as much inventory as possible to countries like Korea.”
Industry officials expect XPeng to soon appoint a local head to oversee its passenger-car business in Korea.
Chinese EV makers typically tap local executives to lead their foreign operations.
BYD named former BMW Group Korea executive Cho In-chul to head its Korean passenger car operation, while Zeekr appointed former Audi Korea head Lim Hyun-ki to run its business in Korea
By Gil-Sung Yang
vertigo@hankyung.com
Sookyung Seo edited this article.
