The electric vehicle market shows signs of recovery, but domestic automakers are increasingly losing their market dominance. With Tesla asserting its presence and Chinese brands like BYD expanding their reach, concerns are growing about the potential collapse of domestic market share.
According to the Korea Automobile Mobility Industry Association (KAMA), domestic electric vehicle sales from January to September this year reached 296,801 units, a 74.5% increase compared to the same period last year. This figure surpasses last year's total sales of 220,177 units.
While this trend signals a reduction in the prolonged electric vehicle demand slump, the rise in imported electric vehicle sales is shrinking the foothold of domestic brands. The share of domestic electric vehicle sales fell from 66.2% in 2024 to 58.5% last year, and as of September this year, it has dropped to 55.3%. If this trend continues, it is likely that domestic market share could fall below 50%.
The surge in imported electric vehicle sales is largely driven by Tesla and BYD. Tesla reported a cumulative total of 89,148 units sold as of September, a 104.4% increase, significantly surpassing Hyundai's 55,733 units and posing a threat to Kia's 101,490 units.
Tesla produces its Model Y and Model 3, which account for 95.3% of its domestic sales, in Shanghai, China, using its Chinese production base to strengthen its foothold in the domestic market.
BYD is also diversifying its lineup with models like the Dolphin priced around 20 million won, the compact SUV Atto 3, and the mid-size sedan Seal, expanding its presence in the affordable electric vehicle market traditionally dominated by Hyundai and Kia.
Additional entries from Chinese electric vehicle brands are imminent. Geely's premium electric vehicle brand Zeekr is set to launch its mid-size SUV 7X in the domestic market this month. Other brands, including Xiaopeng, are reportedly preparing to enter the market as well.
Particular attention is being paid to the potential impact of collaborations between domestic small automakers and Chinese companies on the domestic electric vehicle market. Renault Korea has partnered with China's Geely for platform cooperation to enhance new vehicle development and production competitiveness at its Busan plant. KG Mobility (KGM) has also signed a platform technology usage agreement with China's Chery Automobile to jointly develop mid-size and large SUVs.
* This article has been translated by AI.
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