China's leading EV manufacturer is set to shake up the South Korean auto market. BYD has officially announced plans to launch in South Korea as its low-cost EVs are poised to challenge Hyundai and Kia in their space.
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 Korean subsidiary announced that it has “completed revisions to release passenger car models in the domestic market.”
BYD plans to launch the cars early next year, although an exact date has not been set. The company is establishing a sales and service network in the region as it finalizes details. On BYD Korea's 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 it will be the first time it has introduced passenger models.
BYD is known for its affordable EV models, such as Seagull (Dolphin Mini overseas), Dolphin, and Atto 3 SUV.
BYD will compete with Hyundai, Kia with low-cost EVs
Korea's Hyundai and Kia are also launching 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 purchased 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 the EV3 and upcoming EV4 models. The EV4 is Kia's take on the entry-level electric sedan, which will arrive next year. The EVO facility will be able to build up to 150,000 low-cost EVs per year.
Korean automakers will face BYD's incoming electric models, such as Dolphin, Atto 3, and Seal.
In China, BYD's Seagull EV starts at less than $10,000 (69,800 yuan). Even in overseas markets, such as 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 grow in Korea in the coming years.
Hyundai and Kia are the market leaders. In August, 13,315 EVs were sold in Korea (+79% YOY), with domestic automakers accounting for 9,197.
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