Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Will Chinese EV maker BYD appeal to Korean consumers?
BYD’s Seal electric sedan is displayed at a car dealership in Berlin, Jan. 31. Reuters-Yonhap
By Baek Byung-yeul
BYD will begin selling its electric sedans in Korea as early as the third quarter of this year, attracting keen attention from market watchers as to whether the Chinese electric vehicle (EV) maker will shake up the domestic EV market, which is currently led by Hyundai Motor Group, according to industry officials, Monday.
The Chinese carmaker, which topped the global market in sales last year, is reportedly putting its electric sedan through a performance certification evaluation by the Korea Environment Corporation under the Ministry of Environment.
Given the evaluation is a preliminary step in securing eligibility for government subsidies for consumers purchasing EVs, it is expected that the model to be launched here sometime between July and September will be the Seal, a mid-size sedan.
BYD’s Seal is considered a competitor to Tesla’s Model 3 and Hyundai Motor’s IONIQ 6 in terms of design and size.
Industry expectation here was that BYD could launch a vehicle cheaper than the Seal such as its Atto 3 electric SUV or Dolphin electric hatchback, but contrary to expectations, the Chinese brand is likely to go with the Seal, a better and slightly more expensive EV.
Based on the overseas sales price of the vehicle, the Seal is sold for around 51 million won ($38,197), the Atto 3 is 44 million won and the Dolphin is 39 million won. If consumers purchase an EV for less than 55 million won, they can receive up to 4 million won in government subsidies and additional local government subsidies by region.
"BYD is known to be launching the Seal in the Korean market between this summer and fall. I wonder why BYD decided to launch the Seal, thinking that the cheaper-priced Atto or Dolphin could appeal more to consumers looking for cheap EVs," said Kim Pil-soo, a professor of automotive technology at Daelim University College.
"In order to appeal to consumers in the Korean market, BYD must execute an aggressive pricing policy. If this Chinese company brings a dramatically cheap pricing policy, it will have an impact on the Korean market."
BYD’s T4K electric truck is displayed at a building in Seoul, April, 6, 2023. Newsis
If BYD launches an electric passenger car in the Korean market in the second half of the year, it will compete with Hyundai Motor, Kia and overseas electric vehicle makers including Tesla here. BYD was the world's No. 1 EV manufacturer in 2023, selling 3.02 million vehicles, up 62 percent from the previous year, focusing on not only China but also Europe and Asia.
The professor suggested watching what BYD will do to overcome the low credibility of the Chinese brand in the Korean market.
"Last year, BYD launched its T4K electric truck, but despite having a longer travel range than Hyundai Motor and Kia's electric trucks, it sold only 213 because the price was high and the Chinese brand had low credibility. If a Chinese brand wants to succeed in the Korean market, how it sets the price will ultimately be crucial," the professor said.