BYD ATTO 3 (Image courtesy of BYD)
SEOUL, March 2 (Korea Bizwire) — Chinese electric vehicle giant BYD is facing significant roadblocks in its South Korean expansion, with the launch of its first model, the Atto 3, delayed due to unresolved subsidy approvals.
The setback has frustrated consumers who had pre-ordered the vehicle expecting deliveries last month.
Industry observers suggest that BYD, struggling with trade barriers in the U.S. and Europe, may have underestimated the regulatory challenges in South Korea, pushing forward an aggressive entry strategy despite unresolved subsidy and certification issues.
According to the automotive industry, BYD Korea began accepting pre-orders for the Atto 3 on January 16, following the completion of its certification process.
However, the vehicle has yet to be delivered, as it still requires approval for government subsidies—a crucial factor in pricing competitiveness.
Under South Korean regulations, EVs must pass certification as well as environmental compliance and subsidy assessments conducted by the Korea Environmental Corporation.
However, BYD Korea only submitted key documentation for the subsidy evaluation on February 28, raising concerns that the company prematurely initiated pre-orders without securing all necessary approvals.
One major hurdle is the new 2025 subsidy eligibility requirement mandating that EVs include a State of Charge (SoC) function for battery monitoring.
BYD’s compact electric SUV, the Atto 3 (Image courtesy of Cheil Worldwide)
The Atto 3 lacks this feature, leading BYD Korea to submit a pledge to update the software within a year. It remains uncertain whether the Ministry of Environment will accept this workaround, raising the possibility that the Atto 3 could be denied subsidies entirely.
Without subsidies, BYD Korea’s promised price range in the high-20-million-won bracket ($20,000 range) would no longer be feasible. Even if the subsidy is granted, the final regulatory approval process could push the vehicle’s launch to at least early next month.
“Given the circumstances, we cannot specify an exact delivery date,” a BYD Korea spokesperson stated. “However, we are working to ensure that customers receive their vehicles within March.”
Growing consumer frustration has spilled onto online forums, with some customers voicing concerns over the Atto 3’s cold-weather performance. The vehicle is certified for a 321 km driving range under standard conditions and 309 km in cold temperatures with its 60kWh lithium iron phosphate (LFP) battery.
However, unverified claims have surfaced alleging that extreme cold weather significantly reduces its range, fueling speculation that this could further impact the subsidy approval process.
Adding to the discontent, BYD recently introduced a facelifted version of the Atto 3 in China, while South Korean consumers are set to receive the older model.
Analysts believe BYD’s push into South Korea may have been driven by its difficulties in entering Western markets. The European Union recently announced additional tariffs of up to 35.3% on Chinese EVs, while a potential second Trump administration in the U.S. has signaled plans to impose a 25% tariff on Chinese car imports.
“BYD’s hasty approach in South Korea, coupled with lingering skepticism toward Chinese-made vehicles, could backfire and damage consumer trust,” said an industry insider.
The company’s experience in Japan, where regulatory hurdles delayed its vehicle launch by nearly a year, suggests that navigating the South Korean market may require a more measured approach.
Kevin Lee (kevinlee@koreabizwire.com)
