BYD, the world’s No. 1 Chinese electric vehicle, overtakes Tesla, officially announces its first entry into Korea

by times news cr

The goal is to launch a passenger car brand early next year.
Seal, Ato3, ​etc. subsidies amount to around 30 million won
Cost-effective model expected to be launched in the first half of next year
Clash with Kia EV3 equipped with Indonesian battery
“BYD’s ‌success or ​failure will depend on pricing.”

Donga⁢ DB

BYD, a Chinese electric vehicle brand that is dividing the global electric⁣ vehicle market along with Tesla, will enter the Korean passenger car‌ market early next year. It‌ has been eight years ⁣since the company entered the ‍domestic commercial vehicle market, including electric forklifts, buses, and trucks, in 2016. BYD, which dominated the Chinese domestic market with its cost-effectiveness, is rapidly expanding its business into emerging markets ⁤in Europe and Southeast Asia, to the‍ point that even Volkswagen, ⁤a European⁣ car powerhouse, is⁤ pushing to close its factory in Germany. BYD’s emergence is said ‌to be an event that heralds⁤ a major change ⁢in the domestic ⁣market, where the entry-level electric vehicle market has‌ just⁤ blossomed.

● ​BYD, known ⁣for its cost-effectiveness, officially enters the Korean market

On the 13th, BYD Korea announced, “We have completed the review of launching a passenger car brand in the domestic market and are formalizing its domestic launch.” In the first half of this year (January to June), as BYD Korea began selecting domestic dealers ⁣to sell passenger cars, there⁤ was a lot of talk in the industry that “the launch in Korea is counting down.” In response to‍ this, BYD Korea, which had‌ maintained⁤ the position that “nothing has been​ confirmed,” has acknowledged its entry into​ Korea for the first ​time.

The target date for launching the passenger car brand is early next‍ year.‌ Although no specific information was disclosed on the ⁤day regarding the specific launch schedule and model, the electric mid-sized ‌sedan ‘Seal’ and the small ‌electric sports utility vehicle (SUV) ‘Ato ‌3’ will be launched in Korea in the first half of next year (January to June). It is expected ‍to be ⁤released.

It is reported that the two models are currently ⁣undergoing certification procedures from the Ministry of Environment, including exhaust gas and ⁢noise certification. Considering the local prices of the two models⁤ released in Japan ⁣before Korea (Seal 5.28 million yen, Ato3 4.5 million yen), the expected domestic launch price (excluding subsidies in the launch price) is expected to be ⁣between ⁣30 million and 45 million ⁤won. .

The person ‍who led BYD Korea’s entry into Korea was Jo ⁣In-cheol, CEO of BYD Korea’s passenger vehicle business division, ⁣who joined BYD⁤ Korea in April after serving as the⁢ head of BMW Korea’s Mini. CEO Cho said on this ⁢day, “In order to meet the high expectations of ‌domestic consumers, we conducted an in-depth‌ review⁣ with executives and⁣ employees with diverse experience and partners,” and added, “We will become a brand that can be trusted by Korean consumers ⁤with excellent technology along with global success experience.” “I will prepare diligently for this,” he said.

〈Global electric vehicle ⁢sales share from January to September 2024〉

※Including commercial‌ vehicles and plug-inhybrids.

● BYD, 22% global market⁢ share, clashes with‌ Hyundai Motor Company’s Kona

BYD, the world’s No. 1 Chinese electric vehicle, overtakes Tesla, officially announces its first entry into Korea

Donga DB

According ​to market research firm SNE Research, BYD holds an overwhelming lead ‌in the cumulative global electric vehicle (including plug-in hybrid) sales share from January to September this​ year, accounting for 22.3%, beating out second ‌place Tesla (11%). In addition to the sluggish performance ​in the Chinese market, Volkswagen, which faced BYD’s offensive in its home market of Europe and was forced to close a factory in its ‍home country of Germany for⁤ the first time since ​its founding in 1937, ​remains in fourth place‍ with a market share​ of 5.9%.​ There is a ‍gap of 18.8% ‍points with Hyundai Motors and Kia (3.5%, 7th place), which are⁣ experiencing rapid hybrid sales growth.

BYD, which is rapidly expanding its influence in the global electric vehicle market, is expected to play the ⁤role of a ‘catfish’ in the domestic automobile market dominated ⁤by ⁤Hyundai Motor Company and​ Kia. In July, Kia ‍launched the‌ EV3, which was ‌equipped with an Indonesian battery ⁣and lowered the selling price to

“To break down the‌ psychological barrier of domestic customers who have aversion to Chinese-made ‍cars, we will have to lower the price to the mid-20 million won range,” ‍he said.

Lee Hang-gu, head of the Automotive Convergence‍ Technology Institute, said, “The government subsidy for electric ⁣vehicles will decrease starting next year,” adding, “In addition, ⁣the proportion of subsidies that ⁤electric vehicles using lithium iron phosphate (LFP) batteries like BYD can receive is higher than that of domestic electric⁤ vehicles ⁤equipped with ternary-based (NCM) batteries. “As it is small, we will have to look at various variables to see ⁢how much BYD’s strength, ‘cost-effectiveness,’ can be ⁤demonstrated in Korea,”​ he⁢ said.

Reporter Kim Jae-hyung [email protected]
Reporter Jaehee Han [email protected]

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E global⁤ electric vehicle ‌(EV) market, has established⁢ itself as the⁤ leader in​ cumulative ⁢electric vehicle sales for the first three‌ quarters of 2024. The⁤ data indicates that BYD‌ claims a⁤ significant market share of 22.3%, far‌ ahead of Tesla,​ which holds ‍the second position with 11%. Volkswagen falls to fourth place with a market share of only 5.9%,⁢ largely impacted by competitive pressures from BYD​ in Europe‌ and difficulties ⁢in the ⁢Chinese market.

The electric‍ vehicle landscape is evolving rapidly, highlighting⁤ the stakes ⁢for traditional automakers ‍as they navigate the increasing competition from brands like BYD. Hyundai​ Motors and Kia are also⁢ facing challenges, currently ⁢at 3.5% market⁤ share combined, which places them ‌in a sluggish‌ seventh position. This⁣ scenario reflects a wider⁢ trend where legacy car manufacturers must adapt swiftly to⁤ keep pace with new entrants in the ​EV space, or risk‌ losing market share.

The competitive landscape indicates not only the growth potential ‍for⁤ electric vehicles but also implies that established brands will need ⁤to innovate and ⁢leverage ⁢their technological ‍advantages to regain market⁣ confidence, particularly in the Korean market, where strong consumer trust is ⁤paramount. As ​the market progresses, the strategies these companies employ ‌will⁢ be crucial in determining their long-term success in an increasingly electrified‌ automotive future.

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ranking

group name

Market share (%)

1

BYD

22.3

2

tesla

11.0

Volkswagen

5.9

5

shanghai ⁤car

5.7