BYD’s D-segment sedan ‘SEAL’ (Image courtesy of BYD UK website)
SEOUL, June 18 (Korea Bizwire) – The expected entry of China’s BYD Auto Co. into the South Korean consumer electric vehicle (EV) market this year will likely intensify competition within the low-cost segment of the market, which globally has seen a stagnation in growth as of late due to the so-called EV adoption chasm, according to industry watchers Tuesday.
The Chinese EV maker has applied for emissions and noise certification for its midsized EV sedan Seal with the National Institute of Environmental Research under the South Korean environment ministry on June 5, marking the beginning of BYD’s domestic release procedure.
The process, which checks factors, such as the driving range on a single charge, is known to take around two to three months. Performance evaluations linked to a review for EV subsidies are conducted separately by the Korea Environment Corp.
In terms of size and performance, BYD’s Seal model, whose entry price trim is set at 179,800 yuan (US$24,730), is comparable to Tesla’s Model 3 and Hyundai Motor’s Ioniq 6.
This file photo from Feb. 27, 2024, shows a BYD Auto SUV exhibited at the Geveva International Motor Show in the Swiss city. (Yonhap)
Market watchers expect the model to become eligible for EV subsidies when released. Some, however, note the use of lithium iron phosphate (LFP) batteries in the model could work against the model due to the low recyclable value of LFP batteries.
Other more affordable BYD models, including the Dolphin hatchback and the Atto 3 compact crossover, are also reportedly being considered for release in the country.
BYD has already applied for trademarks for six models in the domestic market, including those for the Seal, Dolphin and Atto models.
If BYD successfully launches its passenger EV cars in South Korea with competitive pricing, it could impact the domestic electric vehicle market, currently dominated by Hyundai Motor and Kia.
South Korean automakers have already seen a decrease in the domestic EV market share, dropping 3.5 percentage points to 76.6 percent last year, especially in line with the release of Tesla’s Model Y vehicles produced in China.
The EV3, Kia’s latest electric car model (Yonhap)
Local automakers, too, are moving to introduce more affordable models with a better value proposition, notably improved battery capacity.
Hyundai plans to unveil the EV version of its mini SUV Casper at the upcoming Busan International Mobility show later this month. The model’s maximum driving range on a single charge is 315 kilometers, which is about 100 kilometers longer than that of the comparable Kia Ray EV.
Kia’s EV3, the company’s third and latest EV model after the larger EV6 and EV9 models, is widely expected to become a hit, as the company has particularly designed the vehicle for drivers, prioritizing reasonable prices and low maintenance costs.
The company aims to sell 18,000 units of the EV3 in the domestic market in the July-December period, while planning to begin exporting the model to Europe later this year and the United States in 2025.
An auto industry watcher noted that China’s ultra-low-cost strategy has “already proven successful in other sectors, notably in retail with platforms, such as Temu. If BYD proves its competitiveness, it could pose a serious threat to domestic companies.”
(Yonhap)
