Tesla Model Y. Key to this growth was Tesla’s aggressive pricing strategy. (Yonhap)
SEOUL, Dec. 16 (Korea Bizwire) –Tesla is poised to claim the second spot in South Korea’s electric passenger car market, overtaking Hyundai Motor (excluding Genesis) for the first time since entering the market in 2017.
Despite challenges such as slowing demand for EVs and a sluggish domestic economy, Tesla has achieved a record milestone of over 20,000 new vehicle registrations this year.
This photo, provided by the Hyundai Motor Group, shows the carmaker’s upgraded all-electric Ioniq 5, released March 4, 2024. (Image courtesy of Yonhap)
A Narrow Lead Over Hyundai
Data from Kaizuyu Data Research Institute shows that Tesla registered 28,498 new electric vehicles between January and November 2024, edging out Hyundai by just 35 units. Kia remains the market leader with 34,384 registrations.
If Tesla maintains its momentum through December, it will officially dethrone Hyundai as the No. 2 EV brand in South Korea for the first time in four years.
Tesla’s top-performing models—the Model Y SUV (17,671 units) and the Model 3 sedan (10,319 units)—have driven the brand’s resurgence.
Key to this growth was Tesla’s aggressive pricing strategy, including two price cuts for the Model Y, reducing its cost to 52.99 million won (about $40,000), and the launch of a refreshed Model 3 in April.
Market Context and Challenges
Tesla’s performance stands out in a domestic EV market that has faced a slowdown after years of rapid growth. New EV registrations peaked at 123,908 units in 2022 but declined to 115,822 last year and are expected to remain flat at around 117,160 units this year, based on data through November.
While Tesla has made gains, Hyundai and Kia have dominated the market since launching their dedicated EVs—the Ioniq 5 and EV6—in 2021. The two brands held the top two spots in 2021 and 2022, benefiting from their strong presence in both domestic and international markets.
U.S. electric carmaker Tesla Inc. has emerged as a major player in South Korea’s imported passenger vehicle market this year. (Image courtesy of Tesla Inc.)
The Competitive Landscape
Kia leads the market, followed by Tesla and Hyundai, while KG Mobility secured fourth place with 6,016 units, the only mid-sized domestic automaker in the top 10. German automakers, including BMW, Mercedes-Benz, Audi, and Volkswagen, occupy positions 5 through 8, with Genesis and Porsche rounding out the top 10.
Tesla’s comeback highlights its ability to adapt to local market dynamics and maintain appeal through technological innovation and competitive pricing. “Our product’s technology and innovation have resonated effectively with consumers,” a Tesla Korea representative stated.
As Tesla eyes the 30,000-unit mark by year-end, its success in bucking market trends underscores its growing influence in South Korea’s increasingly competitive EV landscape.
Kevin Lee (kevinlee@koreabizwire.com)
