Chinese electric vehicle manufacturer BYD entered the domestic market on the 16th, increasing tension for local companies such as Hyundai and Kia. In the past, Chinese cars faced criticism for low quality, but BYD is rapidly increasing its market share globally with high technology and affordable prices.
According to major Chinese media including China Daily on the 19th, BYD's passenger car sales last year reached 4,272,145 units, a 41.3% increase compared to the previous year. Of this, overseas sales amounted to 417,204 units, up 71.9%. This indicates a steeper growth rate overseas compared to the domestic market.
BYD's sales are rapidly increasing in Latin America, Southeast Asia, and Europe. In Brazil, BYD's largest overseas market, 50,000 units were sold between January and September last year, accounting for 72% of total imported car sales in Brazil during the same period. After entering Thailand in 2022, BYD achieved 30,000 sales in 2023, ranking first, and in the first quarter of last year, its electric vehicle market share rose to 46%.
BYD is establishing its presence even in Japan, which was considered a barren land for electric vehicles. According to the Japan Automobile Importers Association (JAIA), BYD's passenger car sales in Japan last year reached 2,223 units. Last year, total electric vehicle sales in Japan amounted to 59,736 units, with a share exceeding half taken by Nissan (30,749 units), followed by Tesla (5,600 units), Mitsubishi (2,504 units), and BYD. Although BYD's share of total sales is only about 4%, it climbed to fourth place in just two years since its entry.
BYD is also recognized for its quality in Japan. BYD's hatchback model Dolphin received the 2023 Daesang award for 'Car of the Year' in Japan, and last year, the mid-sized sedan Seal was selected as one of the 10 nominees for 'Car of the Year' in Japan, marking a first for a Chinese automobile.
BYD is emphasizing an offline-centered sales strategy abroad. While some electric vehicle brands like Tesla focus on online sales, BYD collaborates with local dealers and opens offline stores in each country it enters to target the market. BYD is currently operating about 70 dealerships in Japan and plans to expand this to over 100 by the end of the year.
Prior to its entry into the domestic market, BYD signed sales agency contracts with six major dealers, including Deutsch Motors' subsidiary DT Networks, Samchuly, and Vision Mobility. A source in the finished vehicle industry noted, 'While BYD's global market share is rising, there remains significant distrust towards Chinese cars domestically,' adding, 'To alleviate consumer skepticism, it seems BYD will implement face-to-face sales strategies accompanied by test drives and product explanations by sales staff.'
BYD's electric vehicles are expected to be sold in Korea at prices nearly 10 million won cheaper than those of Hyundai and Kia. The domestic selling price for the base trim of the flagship model Atto 3 is set at 31.5 million won before subsidies. The Hyundai Kona Electric starts at 41.42 million won, and the Ioniq 5 starts at 47 million won. BYD's mid-sized sedan Seal will be sold starting at 40 million won, which is about 7 million won lower than the Hyundai Ioniq 6 in the same vehicle class.
The atmosphere at Hyundai Motor Group is tense due to BYD's entry, which emphasizes cost-effectiveness. Yang Jin-soo, head of the Mobility Industry Research Department at Hyundai Motor Group Research Institute, said at a seminar on the 15th, 'We must not underestimate BYD's technological competitiveness. There is a possibility that it could rapidly encroach on the domestic market, similar to how the Chinese company Roborock dominated the domestic robot vacuum market.'