It has been six months since the Chinese electric vehicle manufacturer BYD entered the Korean market, but it has not made as big an impact as expected. The low trust in Chinese automobiles among domestic consumers and the ongoing slowdown in electric vehicle demand are cited as reasons.
According to automobile market research firm Kaizyu on the 13th, BYD's domestic market sales in the first half of this year totaled 1,337 vehicles. This ranks 14th among all imported car brands. Except for some ultra-high-end brands, it recorded one of the lowest sales among companies selling volume models.
BYD entered the domestic market in January, but due to delays in the Ministry of Environment's subsidies calculation, the official customer deliveries began in April. BYD sold 543 units in April, recording the highest sales among single trim imported cars, but sales in June plummeted to 220 units.
There were expectations in the finished car industry that BYD would create a sensation in the domestic market. This was due to BYD surpassing the U.S. electric vehicle manufacturer Tesla to become the world's largest electric vehicle manufacturer, along with high evaluations of its battery technology. Although it has not been officially stated, it is reported that BYD set an internal goal of selling more than 10,000 units in the domestic market this year.
Many opinions suggest that BYD struggles in the domestic market because it offers only one model, providing limited choices for consumers, along with a significant distrust of Chinese automobiles among domestic consumers.
In the first half of this year, BYD sold the Atto 3, a compact sports utility vehicle (SUV), in Korea. However, domestic demand is high for mid-size sedans and mid-size SUVs, and analyses suggest that the Atto 3 fell short of creating a sensation.
The Atto 3 is sold at about 10 million won cheaper than competing domestic models such as Hyundai's Kona Electric and Kia's EV, but as Hyundai and Kia began aggressive discount sales, the cost-effectiveness advantage was not significantly highlighted.
The continued slump in the electric vehicle market is also cited as a reason for BYD's sales decline. In the case of Hyundai, the sales of its main electric vehicle model, the Ioniq 5, dropped by 3.6% compared to the same period last year. Sales in June decreased by 18.8% compared to the same period last year. Due to the continued poor sales of electric vehicles, Hyundai even suspended operations at its Ulsan plant, which manufactures the Ioniq 5 and Kona Electric.
There are opinions that BYD's sales performance in Korea may improve in the second half of the year as new models set to be launched are mid-size sedans and mid-size SUVs, which are in high demand domestically. On the other hand, some point out that it will be difficult to establish a foothold if the price difference with Hyundai and Kia is not significant.
BYD has set the selling price of its second domestic launch model, the mid-size sedan Seal, at 46.9 million won. The Hyundai Ioniq 6, which is also a mid-size electric sedan, starts at 46.95 million won. Following the Seal, BYD plans to introduce the mid-size SUV Sea Lion 7 in Korea within this year.
An official in the imported car industry said, "BYD's financial structure worsened due to overproduction issues in the Chinese market last month, leading to a discount of over 30% on sales prices. If cars sold at low prices in their home country are offered in Korea at prices not much different from those of Hyundai and Kia, it will be difficult to attract consumer interest."