Chinese electric vehicle manufacturer BYD is expanding its footprint in the East Asian market, including South Korea and Japan. In the South Korean market, BYD recorded the highest sales among imported electric vehicles based on single trim last month, starting customer deliveries. Recently, the company plans to develop a dedicated compact car model in Japan, where it is currently gaining attention, to accelerate its market penetration.
According to market analysis firm Kaizyu on the 14th, BYD's small sports utility vehicle (SUV) Atto 3 sold 543 units in the domestic market last month. This ranks 7th in model sales behind the Mercedes-Benz E-Class, BMW 5 Series, Tesla Model Y, Model 3, BMW X5, and Lexus ES.
When narrowing the target to imported electric vehicles based on single trim, the Atto 3 recorded the highest sales. According to the Korea Automobile Importers & Distributors Association (KAIDA), last month's sales of the Tesla Model Y Long Range trim were 533 units, which is lower than the Atto 3. The Model 3 Long Range trim sold only 350 units.
Tesla's Model Y and Model 3 are divided into rear-wheel drive (RWD) and long-range all-wheel drive (AWD) trims, but the Atto 3 is sold in just one trim.
The Atto 3, BYD's first locally launched model, began customer deliveries on the 14th of last month. BYD initially planned to start sales by the end of the first quarter this year, but the delay in subsidy calculations from the Ministry of Environment postponed the deliveries. Considering that sales tracking began in mid-last month, the imported car industry evaluates the first month's sales performance as at a satisfactory level.
Currently, the contract volume for the Atto 3 is reported to have exceeded 2,000 units. BYD plans to launch a mid-size sedan named Seal in July and a mid-size SUV named Sea Lion 7 in the second half of the year.
An industry source in the imported car sector noted, "BYD is making efforts to target the South Korean market, such as planning to increase the number of service centers from the current 12 to 25 by the end of this year. As the number of launched models expands and brand recognition increases, there is a high possibility of enhanced sales momentum."
BYD is also sailing smoothly in Japan, where it entered earlier. According to the Japan Automobile Importers Association (JAIA), BYD sold 2,223 units in Japan last year, a 54% increase from the previous year. This ranks second among imported electric vehicle manufacturers, following Tesla, which sold 5,600 units.
In Japan, where the popularity of electric vehicles is relatively low, Nissan is the market leader. Last year, Nissan sold a total of 30,749 units. However, sales decreased by 44% year-on-year as its key model, the compact hatchback Leaf, has not been updated since the launch of its second-generation model in 2017. BYD is capitalizing on this gap with various models, including the Atto 3, Seal, and compact hatchback Dolphin, all at competitive prices.
According to major Japanese media outlets like Nihon Keizai, BYD has reportedly begun development of a dedicated compact car model for Japan. Recognizing the high proportion of compact cars in the Japanese automobile market, the company is making investments to quickly expand its sales volume. Japan's narrow roads and stringent parking space requirements contribute to the popularity of compact cars.
An industry source in the finished vehicle sector stated, "The world's largest consumer market, the United States, is very challenging for Chinese automobile manufacturers to enter, so BYD is focusing its efforts on targeting other markets such as Asia and Europe. Already, in Southeast Asia, including Thailand and Malaysia, BYD has surpassed traditional stronghold Japan to become the top seller. "