Kia & Hyundai unfazed by BYD's EVs in South Korea
Today at 07:57 AM
Kia and Hyundai are unfazed by BYD's electric vehicles launching in South Korea.
Earlier this month, Chinese automaker BYD announced it would enter South Korea's passenger car market in 2025. BYD entered South Korea's commercial car market in 2016 but has yet to launch a passenger car there.
The South Korean auto market will be different compared to other markets BYD has entered. The general consensus among South Korean auto industry insiders seems to be that BYD's cheap electric vehicles will not be enough to convince local customers to purchase cars from the Chinese brand.
"I understand that Hyundai and Kia's internal response to BYD's entry to the domestic market is lukewarm. Not only have they not discussed specific countermeasures, but the internal atmosphere is that BYD will not be able to exert much influence in the domestic market," commented an industry insider to Insight Korea.
Most insiders agree that BYD will be unable to low-ball its prices in South Korea because the country imposes 8% tariffs on all Chinese cars. As such, the price difference between South Korean and Chinese cars will be insignificant. Plus, BYD's lithium iron phosphate (LFP) batteries aren't eligible for many subsidies in South Korea.
In addition, Kia and Hyundai electric vehicles have been successful in the global auto market, holding their own against EV powerhouse Tesla. Unlike BYD, Kia and Hyundai do not rely on low price tags to sell EVs. Instead, the South Korean car brands depend on stellar EV designs and features to attract customers.
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