BYD’s T4K (Image courtesy of Yonhap)
SEOUL, Dec. 12 (Korea Bizwire) – Chinese commercial vehicles captured their highest monthly market share of the year in South Korea’s imported vehicle market last month, raising concerns about growing Chinese dominance as companies like BYD prepare to enter the passenger car market.
According to data from Kaizen Auto Research Institute released on December 11, Chinese vehicles accounted for 358 units, or 54.3%, of the total 659 imported commercial vehicles (including buses, trucks, vans, and special purpose vehicles) registered in South Korea last month – marking the highest monthly share this year.
For the January-November period, Chinese commercial vehicles maintained a 41.6% market share with 2,723 units registered.
Chinese manufacturer BYD led all imported commercial vehicle brands in registrations, with 140 units – a 21.7% increase compared to the same period last year. Chinese brands dominated the top 10 list, with five manufacturers including BYD (1st), Geely (3rd), Xinyuan (4th), Higer Bus (8th), and Dongfeng Sokon (10th).
The Chinese presence has grown dramatically in recent years. Registration numbers jumped from just 296 units in 2020 to 569 in 2021, 2,276 in 2022, and 4,215 in 2023. Market share has similarly surged from 6.2% in 2020 to 47.5% in 2023 – a 41.3 percentage point increase in four years.
Industry experts attribute the popularity of Chinese commercial vehicles to their competitive pricing and satisfactory performance. Commercial vehicles, particularly those used by small business owners, are more price-sensitive than passenger cars where design and features play a larger role.
For example, Geely’s 1-ton cargo van, SE-A, is available for about 15 million won after government subsidies in South Korea.
The success of Chinese commercial vehicles has raised concerns as BYD, the world’s leading electric vehicle brand, prepares to enter South Korea’s passenger car market. While Hyundai is launching its ST1 electrified commercial platform and Kia plans to introduce Purpose Built Vehicles (PBV) next year, the outcome of their competition with Chinese manufacturers remains uncertain.
“China is achieving significant success in Korea’s commercial vehicle market through its electric vehicle brands,” an automotive industry official noted. “This will likely serve as a foundation for their strategy to enter the passenger car market.”
Kevin Lee (kevinlee@koreabizwire.com)
