Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
BYD Korea looks to offset subsidy exclusion with PHEV sales
Visitors browse the BYD Korea booth at the 2026 Busan International Mobility Show at the BEXCO conventional hall, June 28. Yonhap
By Lee Min-hyung
Chinese EV maker excluded from subsidy due to weak supply chain contribution
BYD Korea is expected to pivot its strategic focus toward plug-in hybrid electric vehicles (PHEVs) to offset its exclusion from the government’s electric vehicle (EV) subsidy program.
The Chinese EV maker recently rose to the fourth spot in the nation’s imported car sales, behind Tesla, BMW and Mercedes-Benz, but the momentum has hit an unexpected snag, as its all-electric models became ineligible for subsidies starting Wednesday.
However, the carmaker is widely forecast to counter the disadvantage by aggressively expanding its PHEV lineup, anchored by its strategically priced Sealion 6 PHEV.
According to the Ministry of Climate, Energy and Environment, BYD Korea failed to win the subsidy for its passenger car business here due to its weak profile in supply chain contribution, a category given greater weight under the government's revised evaluation criteria. Having entered Korea's passenger vehicle market only in January last year, the company scored poorly in that category.
Under the government’s updated EV subsidy rule, the climate ministry scores automakers across five categories: technological capability, supply chain contribution, environmental policy response, after-sales sustainability and safety management.
BYD Korea's Sealion 6 DM-i SUV / Courtesy of BYD Korea
Among carmakers, BYD Korea was the only brand to lose its existing subsidy eligibility in the latest round of evaluations.
While the loss of subsidies for pure electric models, such as the Seal sedan or the Sealion 7 SUV, impacts their price competitiveness, BYD Korea is looking to the midsize Sealion 6 PHEV to fill the void.
Unveiled at the 2026 Busan International Mobility Show, the Sealion 6 DM-i PHEV rolled out with a highly competitive single-trim price tag of 37.5 million won ($24,100).
The aggressive pricing strategy sent shockwaves through the domestic market, as PHEVs are typically positioned as premium models in Korea and are significantly more expensive than standard hybrids.
For instance, Toyota’s RAV4 PHEV is priced above 60 million won. BYD Korea's entry-level pricing brings the Sealion 6 PHEV directly into the similar price territory of popular domestic hybrid SUVs, such as the Kia Sportage and Hyundai Motor’s Tucson.
Industry officials said if the Sealion 6 leads to strong initial consumer word-of-mouth regarding its electric driving range and fuel efficiency, it could replicate the rapid volume growth BYD achieved with its pure EVs over the past year.
BYD Korea expects the Sealion 6 PHEV to outsell its EV lineup by roughly three to one here.
“By banking on the growing domestic demand for hybrid alternatives amid a broader global EV slowdown, the automaker intends to offset the impact of the regulatory setback and continue its strong sales momentum,” an official from the auto industry said.