Price-competitive electric vehicles (EVs) manufactured in China are reshaping Korea's imported car market, which was previously dominated by European carmakers. Emerging EV brands are increasing their presence through competitive pricing strategies and changing consumer perceptions, according to data and industry officials on 18th February.

Data from the Korea Automobile and Mobility Association (KAMA) showed that EVs produced in China accounted for roughly one-third of newly registered EVs in Korea last year, compared with approximately 1 per cent in 2021.

The increase reflects the expanding role of China-based production within global supply chains and shifts in consumer perceptions of vehicles manufactured there.

Demand for the Tesla Model Y and the Tesla Model 3, both produced at Tesla's Shanghai Gigafactory, contributed to EV sales growth in Korea. The US carmaker conducted promotional campaigns in the market to expand its customer base, particularly for its lower-priced EV models, supporting its performance amid intensifying competition in the EV segment.

At the same time, BYD entered the Korean market and began competing with imported brands. Since its official debut in Korea in January last year, the company has addressed scepticism towards Chinese vehicles, reflecting its initial year of operations in the market.

Monthly data indicate continued activity. According to the Korea Automobile Importers and Distributors Association, BYD recorded sales in January.

Industry officials stated that performance differences among brands may change depending on future model launches and pricing strategies.

The company's product range includes the BYD Atto 3 and the BYD Sealion 7.

Earlier this month, BYD introduced the BYD Dolphin, with prices starting at 24.5 million won (US$ 17,000) before subsidies. The model has a stated driving range of up to 354 kilometres on a single charge.

Industry officials stated that pricing does not solely account for the performance of Tesla and BYD in Korea. As the domestic EV market remains at an early stage, consumers are considering manufacturers that focus exclusively on EVs as well as traditional carmakers transitioning from internal combustion engine vehicles.

"The steady sales growth of these brands indicates that Korean consumers are increasingly confident in dedicated EV manufacturers," an industry official said.

"Brand identity and technological focus are also becoming decisive factors in customers' purchase decisions."