Chinese EVs expand into South Korea, replacing Japanese automakers, campaigning energy transition.
JAKARTA – Chinese electric vehicle manufacturers are accelerating their expansion in South Korea as Japanese carmakers begin to withdraw from the market.
As reported by The Korea Times, Nissan first exited the South Korean market in 2020, followed by Honda, which plans to cease sales in the country by the end of 2026, leaving Toyota and Lexus as the remaining Japanese brands maintaining sales operations.
On the other hand, Chinese manufacturers have taken an aggressive stance, led by BYD through its local unit, which has surpassed 10,000 units in cumulative sales in just around one year since beginning EV sales in South Korea.
BYD even climbed into the top four imported car brands in monthly sales in March, surpassing Toyota and Lexus.
This achievement reflects a shift in consumer perception of Chinese vehicles, which are now seen as more competitive in terms of price and quality.
Capitalising on this momentum, Chinese automakers are expected to intensify their expansion.
Zeekr, a premium brand under the Geely Group, has begun building a team in South Korea ahead of its official launch, including for sales and customer service functions.
The brand plans to introduce the 7X mid-size electric SUV, which will compete with the Tesla Model Y, Hyundai IONIQ 5 and Kia EV5.
In addition, Xpeng established a local subsidiary in South Korea last year and is accelerating its market entry plans, while Chery Automobile is also expected to follow, although no clear timeline has been announced.
Industry analysts say the shift reflects differing strategies among manufacturers. Japanese brands are still seen as focusing on conventional and hybrid vehicles.
“Japanese brands remain more focused on internal combustion engine and hybrid models, which is viewed as a key factor behind Honda Korea’s decision to withdraw from the market,” an industry official said.
Meanwhile, Chinese manufacturers are more aggressive in pushing the transition to electric vehicles.
“Chinese EV makers are likely to capture more opportunities here, as they are more aggressive in driving the shift towards electric mobility compared with their Japanese competitors,” the official added. (DH/ZH)
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