Premium electric SUV segment becomes increasingly contested in Korea

Porsche Korea's Cayenne Electric is displayed at an exhibition hall in Seoul, March 19. Yonhap

Global automakers are joining a full-fledged race for the premium electric SUV market in Korea, with major German, European and Chinese brands rushing to launch their new strategic models here.

The segment has recently emerged as a major battlefield for the auto industry, as customers are getting more responsive to all-electric cars than before. This is evidenced by solid sales from such models, including Audi Korea’s Q4 e-tron and Porsche Korea’s Macan Electric.

Mercedes-Benz Korea and BMW Korea are also expanding their push into the electric SUV market, so they can secure a bigger share in the emerging yet lucrative premium electric SUV segment.

Of particular interest is that what was once a competitive landscape dominated by the three German luxury carmakers is now evolving into a more intense battleground, with Volvo and emerging Chinese brands, such as Zeekr, joining the fray.

BMW Korea is set to launch its strategic electric SUV — the iX3 — in the third quarter of this year. The vehicle made headlines as the carmaker’s first model under the Neue Klasse electric-only platform.

The Zeekr 7X premium electric SUV / Courtesy of Zeekr Korea

Zeekr, a premium electric vehicle brand in China, is also making a notable entry into the Korean market with its planned launch of the 7X premium electric SUV.

The model is drawing increasing attention for its strong price competitiveness, as the vehicle is expected to be priced at around 60 million won ($39,500) here. The vehicle is equipped with a string of premium aspects, such as luxurious interior and advanced air suspension.

Audi and Porsche are also striving to expand the premium electric SUV market, targeting models priced above 100 million won with vehicles, such as the Q6 e-tron and the Cayenne Electric. Porsche Korea also recently unveiled its flagship Cayenne Electric SUV for its greater presence in the premium electric SUV market here.

Volvo Car Korea has intensified competition with the latest launch of its flagship EX90 electric SUV. Emphasizing both premium identity and price competitiveness, the model starts at 106.2 million won. This is much lower than its rival models, such as the BMW iX and Mercedes-Benz EQS SUV.

“Renowned global carmakers are identifying the premium electric SUV as their next major revenue area and rush to release new models with strong commercial value, in their bid to preemptively expand their market share in the segment,” an auto industry official said.