Tesla Korea’s weak after-sales service catches flak

Tesla Korea's Model Y electric SUV / Courtesy of Tesla Korea

Tesla Korea has come under criticism for its poor after-sales service system and infrastructure, as the carmaker reportedly does not take appropriate countermeasures against repeated errors from its battery management system (BMS), according to data and experts Tuesday.

The U.S. electric vehicle (EV) maker is being urged to invest more in expanding relevant service infrastructures across the nation, as its sales are rapidly increasing due to the strong popularity of its Model Y electric SUV.

According to data from the Korea Automobile Importers and Distributors Association (KAIDA), Tesla was the nation’s top-selling overseas auto brand for three consecutive months starting in July. The carmaker sold 9,069 EVs in September alone, outperforming electric models from strong competitors such as BMW Korea and Mercedes-Benz Korea by a wide margin.

However, Tesla Korea is still seen as a “much less reliable” carmaker in terms of its after-sales system when compared to BMW and Mercedes-Benz, experts said.

Data from the office of Rep. Park Yong-kab of the ruling Democratic Party of Korea shows that a total of 4,637 BMS errors have been reported from Tesla Korea vehicles in about five years, starting from August 2020.

Tesla Korea offered remanufactured battery replacements for nearly half of the reported cases. The remanufactured batteries are used units with reduced energy capacity.

“Typically, remanufactured batteries do not have to pass as strict certification standards as new ones in Korea,” said Kim Pil-soo, professor of automotive technology at Daelim University College.

The professor added that Tesla Korea should expand the number of service centers and its infrastructure, as its sales volume is rapidly rising in the country.

The Korean subsidiary of the U.S. EV maker operates a total of 14 service centers, eight of which are located in Seoul and its surrounding areas.

Tesla Korea has also faced criticism for its slow repair service. In more than 100 reported cases, it took three to six months for Tesla Korea to offer BMS repair services for its vehicles.

Tesla logo is seen in this illustration. Reuters-Yonhap

Kim urged the government to heighten regulatory pressure on Tesla Korea, as the carmaker’s sales-focused business practices may cause massive inconvenience to customers in the future.

“The functionality of EV batteries starts to drop after about three to four years, so Tesla customers will continue to fall victim to such service-based inconveniences unless the carmaker takes immediate steps to widen its repair infrastructure,” professor Kim said.

Tesla Korea also contributes less to the regional economy than the German carmakers. According to data from the carmaker’s regulatory filing, Tesla Korea generated 1.69 trillion won ($1.18 billion) in sales and reaped an operating profit of 25.9 billion won last year, but has not made any donations.

This is not the case for Mercedes-Benz Korea and BMW Korea. The two automakers, which both operate units dedicated to handling corporate social responsibility in Korea, donated 6.8 billion won and 1.3 billion won, respectively, to Korean organizations.