Tesla’s growth in South Korea shows no signs of slowing down. The company is on track to exceed 100,000 cumulative sales in the first half of 2025, just eight years after it entered the South Korean market in 2017. Tesla’s rapid expansion has allowed it to surpass Hyundai (excluding Genesis) and take second place in the South Korean electric vehicle (EV) market, a significant milestone. The future of the South Korean EV market is even more intriguing, with Chinese EV giant BYD set to enter the passenger vehicle market in January 2025, raising questions about how the competition and market share for imported EVs will evolve.
Tesla’s Rapid Growth and Strong 2023 Performance
According to the industry and CarlsYou Data Research Institute, on Wednesday, Tesla’s cumulative sales in South Korea were 92,504 units as of November. This year, Tesla is expected to exceed 30,000 units in annual sales for the first time since entering the South Korean market in 2017, and if this trend continues, cumulative sales are expected to exceed 100,000 units in the first half of 2025. The South Korean EV market continues to stagnate due to the chasm (temporary stagnation in demand). Still, Tesla’s sales in South Korea reached 28,498 units from January to November of this year. This is an 84.6% increase from the previous year. In the case of Model Y, 17,671 units were sold in the South Korean market this year, and Model 3 also recorded 13,119 units. If this trend continues until December of this year, Tesla will surpass Hyundai and will be in second place in South Korean EV market sales. Kia ranked first, recording sales of 34,384 units from January to November.
Tesla’s ability to compete effectively in the South Korean EV market is attributed to several factors, notably its strategic pricing and unique brand strengths. By reducing the price of the Model Y rear-wheel drive by about $1,368, bringing it down to approximately $36,242, Tesla has made its vehicles more accessible to South Korean consumers. In addition, the company launched a facelifted version of the Model 3 in April 2023, further boosting sales. Tesla’s strengths, such as its brand power, the semi-autonomous Autopilot feature, extensive charging infrastructure, and over-the-air software updates, have also contributed to its growing popularity in South Korea.
BYD’s Arrival in 2025: A New Challenge for Tesla and South Korean Brands
In January 2025, China’s largest EV company, BYD, plans to launch a passenger car in the South Korean market, which is expected to intensify the competition for EV market share. BYD is in the final stages of preparations by signing dealer contracts with six companies, including Samchully EV of Samchully Co., Ltd, Harmony Automobile, Vision Mobility, GNB Mobility, SS Motors, and DT Network. An insider of the automobile industry commented that South Korean consumers distrust and dislike Chinese vehicles. However, given the success of Chinese companies overseas through low-price strategies, price is expected to play a significant role in the market.
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