China’s leading EV maker is set to drastically shake up the South Korean auto market. BYD officially announced plans to launch in South Korea with its low-cost EVs poised to challenge Hyundai and Kia on their home turf.
BYD confirmed plans to enter South Korea this week, a market dominated by domestic automakers, including Hyundai and Kia.
In a press release (via Yonhap), BYD’s Korea subsidiary announced it has “completed review to release passenger car brands in the domestic market.”
BYD plans to launch vehicles as early as next year, although no specific date has been set. The company is establishing a sales and service network in the region as it finalizes the details. On BYD’s Korea website, there is now a message saying “Hello Korea, Coming Soon.”
The Chinese auto giant has been selling commercial vehicles in Korea since 2016, but this will be its first time launching passenger models.
BYD is known for its ultra-affordable EV models, such as the Seagull (Dolphin Mini overseas), Dolphin, and Atto 3 SUV.
BYD to rival Hyundai, Kia with low-cost EVs
Korea’s Hyundai and Kia are also introducing new low-cost EVs. In July, Hyundai opened pre-orders for its new Casper Electric in its home market, starting at just $23,000 (31.5 million won). Last month, it launched a new “premium” trim, starting at just $20,000 (27.4 million won).
With incentives, Hyundai said the new EV model can be bought for as little as $7,300 (10 million won).
Kia’s compact EV3 electric SUV is already shaping up to be a “game changer” in Korea. The low-cost electric SUV starts at just $30,700 (42.08 million won).
In September, Kia opened its first EV-only plant in Korea, EVO, to build EV3 and upcoming EV4 models. The EV4 is Kia’s take on an entry-level electric sedan, set to arrive next year. The EVO plant will be able to build up to 150,000 low-cost EVs a year.
Korea’s automakers will face off against BYD’s incoming electric models, such as the Dolphin, Atto 3, and Seal.
In China, BYD’s Seagull EV starts at under $10,000 (69,800 yuan). Even in overseas markets, like Brazil and Mexico, Dolphin Mini prices start at around $20,000. As demand for affordable electric models continues to build, it will be interesting to watch how EV sales shape up in Korea in the coming years.
Hyundai and Kia dominate the market. In August, 13,315 EVs were sold in Korea (+79% YOY), domestic automakers accounted for 9,197.
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