Guan Cha Zhe Wang·2026-01-20 07:16Core Insights - The market share of South Korean domestic electric vehicle manufacturers is declining, with a significant shift towards imported models like Tesla and BYD, raising concerns about the competitiveness of the local automotive industry [1][3][5] Market Trends - By 2025, the market share of South Korean domestic electric vehicle companies is projected to be 52%, down from 69% in 2022, with a gradual decline to 62.7% in 2023 and 59.6% in 2024 [1][3] - The younger consumer demographic shows a strong preference for imported models, particularly the Tesla Model Y and BYD Atto 3 [3][4] Sales Data - In 2025, Tesla and BYD are expected to be the top two electric vehicle brands in South Korea, with Tesla selling 59,916 units and BYD selling 6,107 units [3] - The Tesla Model Y is projected to be the best-selling imported vehicle in South Korea in 2025, with sales reaching 48,187 units [3] Competitive Landscape - Tesla's success in South Korea is attributed to cost advantages from its Shanghai Gigafactory, allowing for significant price reductions, including a decrease of approximately 20 million KRW (around 94,600 RMB) for a lower-priced Model Y version [3][4] - BYD is also making strides in the South Korean market with competitive pricing for models like the Atto 3, which has an official price around 30 million KRW (approximately 141,900 RMB) and can drop to just over 20 million KRW (around 94,600 RMB) after government subsidies [4] Government Policies and Industry Response - The South Korean government aims for half of new car sales to be zero-emission vehicles by 2030, but there are concerns that the market share of imported electric vehicles will continue to grow under current trends [4][5] - Experts suggest that existing subsidy policies are insufficient to boost the adoption of domestic electric vehicles, despite higher subsidies for local brands compared to Tesla and BYD [5] - Recommendations include increasing budget support for future vehicle development and introducing a "domestic production incentive tax" to protect and nurture local manufacturing [5]