BYD and Zeekr Set Sights on South Korean Market, Challenging Hyundai and Kia at Home
Success in the Hyundai-dominant market might enhance the global reputation of electric vehicles from China, according to analysts.
Chinese
electric vehicle (EV)
makers led by
BYD
They have targeted South Korea as a new frontier for growth and improved profit margins due to intense competition at home, which sets them against leading local companies like Hyundai and Kia.
A fruitful entry into the market, where
Tesla
Last year witnessed strong growth, which might enhance the worldwide perception of electric vehicles from China, even though experts predict a potential decline in exports for this year.
South Korea represents a mature automotive market teeming with global brands alongside well-established domestic labels such as Hyundai,” stated Steve Shi, who manages Juchen Auto Trade, an automobile services company. “This country serves as an excellent proving ground for electric vehicles manufactured in China, should they wish to demonstrate their design and production capabilities.
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BYD, which has its headquarters in Shenzhen and ranks as the top electric vehicle manufacturer globally, intends to increase its showroom count in South Korea twofold to reach 30 locations by the conclusion of 2025.
Its domestic competitors like Zeekr, which is a luxury electric vehicle division of the second-biggest automaker in mainland China,
Geely Auto
, and Deepal, which is an EV subsidiary of
Changan Automobile
Additionally, they have started establishing sales networks in the country, where Hyundai and Kia dominate the market.
In the previous month, BYD introduced its Seal—a mid-sized electric vehicle—in South Korea at an initial cost of 47.5 million won ($33,900). This automobile boasts rapid-charging capabilities and can travel up to 650 kilometers on a single charge.
It competes with vehicles like Kia’s EV6 SUV, boasting a driving range of 410 kilometers and starting at 41.9 million won. In comparison, Hyundai’s well-liked Elantra, equipped with a gasoline-powered engine, comes in at approximately 40 million won.
BYD, having started to expand internationally in 2023, plans to sell 10,000 vehicles in South Korea this year. As the leading electric vehicle brand in China, BYD primarily focuses on domestic sales, where over 90 percent of its car sales occur outside of international markets.
In 2024, Hyundai and its subsidiary Kia sold approximately 1.2 million vehicles to South Korean consumers, representing 75 percent of the domestic automotive market, as reported by the Korea Automobile Importers & Distributors Association (KAIDA).
Last year, electric vehicle sales in South Korea dropped by 3.9 percent to reach 99,093 units, equating to a market share of 6.1 percent. Nevertheless, according to KAIDA data, Tesla experienced a significant surge with sales climbing up by 550 percent compared to the previous year, totaling 29,750 vehicles sold.
As stated by Gao Shen, an independent analyst from Shanghai, the primary objective for Chinese electric vehicle companies entering the South Korean market is to outperform Tesla,” he explained. “Securing a significant portion of the local electric car sector would greatly enhance their belief in their ability to compete in various advanced global automobile markets.
In Renault Korea, where Geely Auto holds a 34 percent share, the Grand Koleos, a plug-in hybrid SUV, moved 22,034 units within four months following its launch in September. This vehicle incorporates Geely’s electric-vehicle technology.
China’s exports of vehicles abroad are expected to slow down in 2025 after experiencing significant growth over the past two years. This deceleration is due to the impact of import duties levied by both the United States and the European Union, which will hinder Chinese automakers from expanding internationally.
As stated in a report released last month by the management consulting firm AlixPartners,
China’s auto exports
were expected to rise by approximately 4% to reach 6.7 million units in 2025, after experiencing a significant 23% growth the previous year.
Chinese automakers and suppliers led the charge in the worldwide electric vehicle sector, with their offerings surpassing those of international competitors particularly in battery technology, infotainment systems, and more.
autonomous-driving software
According to David Xu Daquan, who serves as the president of Bosch China—the global leader in automotive components—this statement was made.
In 2024, EV sales in China made up over 60 percent of all vehicle deliveries, as reported by the China Passenger Car Association.
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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which serves as the premier source for news coverage of China andAsia.
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