Chinese EV makers gain traction in Korea's import car market despite uphill battle

Visitors look at vehicles displayed by Chinese electric vehicle maker BYD at the Busan International Mobility Show 2026 at BEXCO in Haeundae District, Busan, Sunday. Yonhap

When Choi, a 35-year-old office worker living in Korea, started looking for her next car, she did not expect BYD, a Chinese electric vehicle (EV) brand, to make her shortlist.

“I've wanted an electric vehicle, but domestic models are just too expensive,” Choi said, adding that rising fuel prices first sparked her interest in EVs.

Her attention later turned to Chinese brands after reading about China's rapid adoption of EVs and how it helped cushion the country from recent oil-price shocks linked to the conflict in the Middle East.

“I still have some biases against Chinese products, but with so many people driving them in China, I figured they can't just be cheap junk,” she said. “They’ve probably spent years developing the technology and gone through plenty of trial and error.”

Choi’s case reflects a subtle shift underway: Chinese EV makers are stepping up their presence in Korea, one of the world’s most competitive automotive markets, and are now gaining traction.

The push comes as Chinese-made vehicles overtook Japanese brands in Korea’s import market for the first time in April, according to data from the Korea Automobile Importers & Distributors Association.

Chinese vehicles accounted for 2,023 new registrations during the month, slightly ahead of Japan’s 1,974 and giving China a 6 percent share of the import market. That was driven largely by BYD, whose April registrations alone exceeded the combined sales of major Japanese brands including Toyota, Lexus and Honda, and ranked as the country's fourth-best-selling import brand for a second consecutive month, data showed.

Meanwhile, Chinese automakers are accelerating their local expansion. Zeekr, the premium EV brand under China's Geely Group, recently entered the Korean market and received more than 500 preorders within six days of launching reservations for its first model, the Zeekr 7X electric SUV.

The Zeekr 9X and 7X are displayed at a showroom in Beijing, April 16, ahead of the official launch of the Zeekr 8X in China the following day. AFP-Yonhap

While Chinese brands are yet to pose an immediate threat in Korea, they are gradually reshaping the country's import car landscape, according to industry observers.

“The momentum behind Chinese auto exports has been very strong in recent years,” said Xiao Feng, head of China industrials research at CITIC CLSA.

He attributed the trend to growing global EV adoption, rising fuel costs and Chinese automakers’ efforts to localize production overseas through factories, research centers and supply chains.

While Europe, Latin America and Southeast Asia remain the primary overseas targets for Chinese automakers, Feng said Korea occupies a different position in their global strategy.

“Korea is not a top target from a volume perspective,” he said. “But it is a symbolic market. If Chinese brands can establish themselves in a country with a strong domestic auto industry, it helps prove the quality and competitiveness of their products.”

According to Feng, Chinese EV makers are increasingly competing on technology rather than price alone.

He said features such as intelligent driving assistance, digital cockpits and battery technology have helped Chinese brands attract consumers seeking alternatives to traditional internal combustion vehicles.

“Chinese EVs overseas are not necessarily cheap,” he said. “In many markets, they are priced close to entry-level premium vehicles. What attracts buyers is more the driving experience and technology.”

That focus on technology is also resonating with some Korean consumers, according to KJ Hwang, head of Korean industrial and automotive research at BofA Global Research.

Hwang said Chinese EV makers are increasingly competing with Tesla rather than traditional automakers in the minds of consumers, particularly among buyers looking for advanced software and smart driving features.

“Korean consumers are willing to pay for a better experience," he said. “It's not necessarily about paying less.”

He added that Korea's dense urban environment and long commuting times make technologies such as advanced driver-assistance systems, intelligent cockpits and connected-car functions especially attractive.

Hwang also said perceptions of Chinese technology have evolved in recent years, as more Koreans become aware of China's advances in areas such as artificial intelligence, robotics and smart vehicles.

However, analysts say building a sustainable presence in Korea will require more than product competitiveness.

Choi, the prospective BYD buyer who lives outside of Seoul, said the lack of nearby service centers remains her biggest concern, with the nearest facility located more than two hours away from her home by car.

Cho In-chul, CEO of passenger vehicle division at BYD Korea, speaks during the Chinese carmaker's passenger brand launch event in Incheon, Jan. 16, 2025. Yonhap

Feng said after-sales service networks, dealer coverage and used-car residual values would be critical factors determining whether Chinese automakers can establish a long-term presence in mature overseas markets.

“The next question is whether their service capabilities can keep up as vehicle ownership grows,” he said.

Hwang shared a similar view, saying service infrastructure remains one of the biggest barriers to wider adoption.

BYD said it views Korea as a “strategically important market,” adding it plans to expand its network to 35 showrooms and 26 service centers across Korea by the end of this year. Meanwhile, Zeekr said it plans to expand its offline network to 14 locations and establish 11 service centers nationwide by year-end.

Hwang estimates Chinese automakers could capture 10 to 15 percent of Korea's EV market by around 2030 under a base-case scenario, with market share potentially reaching 20 percent in a more optimistic case.