"For 24 Million Won": '20,000 Chinese Cars' Take Over South Korea's Home Market... What Is Hyundai-Kia's Share in China?

Behind Tesla, BMW and Mercedes-Benz
Hyundai Motor and Kia Hold Just 0.6% Combined Share of China's Market

BYD, the Chinese electric vehicle maker that entered the South Korean market last year, is aggressively targeting the country's imported-car market by leveraging its price competitiveness.

According to Yonhap News Agency and the Korea Automobile Importers & Distributors Association on October 31, BYD recorded 20,137 new vehicle registrations in South Korea from January through September this year. In September, it ranked fourth in sales among imported-car brands, following Tesla, BMW and Mercedes-Benz.

BYD Sealion 6 DM-i

BYD posted strong results, with sales of both its electric hatchback, the Dolphin, and its midsize electric sport utility vehicle (SUV), the Sealion 7, exceeding 7,000 units. The Dolphin starts at 24.5 million won, while the Sealion 7 is priced from 44.9 million to 53.9 million won.

BYD also launched the plug-in hybrid electric vehicle (PHEV) Sealion 6 DM-i and stepped up its marketing, including running TV advertisements. Bloomberg also noted that "BYD has recently been growing rapidly in the South Korean market by leveraging its pricing and technological capabilities," adding that it "is posing a threat to Hyundai Motor and Kia."

Buoyed by BYD's rapid growth, registrations of Chinese-brand passenger cars in South Korea reached 20,186 from January through September this year. Over the same period, China ranked third, behind Germany and the United States, in the share of new imported-car registrations by country, narrowly surpassing Japan with 7.22% compared with Japan's 7.21%.

Chinese automakers are expected to step up their entry into the South Korean market.

A BYD vehicle is unveiled at the BYD Brand Launch Media Showcase held at Incheon Sangsang Platform on January 16 last year. Incheon = Photo by Kang Jinhyung.

Zeekr, the premium electric vehicle brand of China's Geely Auto, introduced its midsize electric SUV, the 7X, to South Korean consumers this month. XPeng and Chery Automobile are also preparing to enter the South Korean market. Both companies have established local subsidiaries, and XPeng has begun recruiting staff to oversee its South Korean business.

Chinese automakers are rushing to enter South Korea amid intensifying competition in their domestic market and slowing demand.

According to statistics from the China Passenger Car Association (CPCA), retail sales of passenger cars in China fell 28% year on year to 1.618 million units in September. Analysts say Chinese automakers are changing the perceptions of consumers overseas, including in South Korea, through not only low prices but also improved quality and technology. Chinese automakers have also reached double-digit market shares in Europe.

China's Geely Automobile

Meanwhile, unlike Chinese automakers, which are rapidly increasing their sales in South Korea, Hyundai Motor and Kia have seen their sales fall sharply in China, the world's largest auto market.

According to a report by Hana Securities analyzing CPCA statistics, Hyundai Motor and Kia sold approximately 4,000 and 5,000 vehicles, respectively, at retail in China in September, down 47% and 31% year on year. Their combined sales fell 39% to approximately 9,000 units, dropping below 10,000 for the first time this year. Their combined market share was just 0.6%. The decline in Hyundai Motor and Kia's sales was 11 percentage points steeper than the 28% contraction in China's overall passenger car market over the same period.

Hyundai Motor and Kia once held a combined market share of more than 10% in China in the mid-2010s. But as the Chinese market rapidly shifts toward electric vehicles, they are losing ground to local companies and finding it increasingly difficult to maintain their foothold.

This content was produced with the assistance of AI translation services.