BYD Sells 20,000 Vehicles in Korea as Hyundai, Kia Slip in China

BYD registered 20,137 new vehicles in South Korea between January and September, according to Yonhap News Agency and the Korea Automobile Importers & Distributors Association, as Chinese electric car makers gain ground in the country on price competitiveness.

The Chinese brand entered the Korean market last year. It was the fourth-largest imported car brand in September, based on registration data, behind Tesla, BMW and Mercedes-Benz. The Dolphin electric hatchback and the Sealion 7 mid-size electric SUV each sold more than 7,000 units in the first nine months. The Dolphin starts at 24.5 million won, while the Sealion 7 is priced between 44.9 million and 53.9 million won. BYD has also launched the Sealion 6 DM-i plug-in hybrid and increased marketing with television advertising.

New registrations of Chinese-brand passenger cars in South Korea reached 20,186 units in the January–September period. China accounted for 7.22% of new imported vehicle registrations by country of origin, ahead of Japan at 7.21% and behind Germany and the United States.

More Chinese automakers are entering the market. Zeekr introduced the 7X mid-size electric SUV in South Korea this month. Xpeng and Chery Automobile have established Korean subsidiaries, and Xpeng has begun hiring staff for its Korean business.

Chinese automakers are expanding overseas amid intensifying competition and slowing demand at home. Retail sales of passenger cars in China totalled 1.618 million units in September, down 28% from a year earlier, according to the China Passenger Car Association. Analysts said consumer perceptions of Chinese-made cars are changing, and pointed to Chinese automakers’ double-digit market share in Europe.

In contrast, Hyundai Motor and Kia continue to struggle in China. Hyundai Motor’s retail sales in China were about 4,000 units in September and Kia’s about 5,000 units, according to a Hana Securities report analysing China Passenger Car Association data. That represented year-on-year declines of 47% and 31%, respectively. Their combined sales of about 9,000 units were down 39%, the first time this year that monthly sales fell below 10,000 units, and their combined market share was 0.6%. The fall was 11 percentage points steeper than the 28% decline in China’s overall passenger car market.

Hyundai Motor and Kia at one point in the mid-2010s exceeded a combined 10% market share in China, but their position narrowed as local rivals gained ground and the market shifted towards electric vehicles. Hyundai Motor plans to launch 20 new models over the next five years and lift annual sales in China to around 500,000 units in an effort to turn things around.