BYD Begins Sales of Atto 3, Raising Concerns for Renault and GM Korea Over Upcoming Electric Vehicle Launches
BYD, the Chinese company that ranks as the number one global seller of electric vehicles, has entered the Korean market, posing a significant challenge to domestic automakers with its focus on value for money. According to industry sources on the 20th, BYD has started selling its compact electric SUV, the Atto 3, in South Korea. Since its launch in 2022, the Atto 3 has sold over 1 million units globally and features a lithium iron phosphate (LFP) battery, offering a driving range of 321 km per charge in standard conditions.
In Korea, it is available in two trims: the standard model and the higher-end Atto 3 Plus, priced at 31.5 million KRW and 33.3 million KRW, respectively, the lowest prices globally. In comparison, the car sells for around 40 million KRW in Japan and the mid-30 million KRW range in Southeast Asia.
Despite the relatively small government subsidy expected for using LFP batteries, the low price means the actual purchase cost is expected to be in the high 20 million KRW range. Subsidy details will be finalized before customer delivery in February.
The Atto 3 targets the compact electric SUV market, where other vehicles like the Kia EV3 and Hyundai’s Casper Electric have been performing well despite a temporary drop in demand for electric vehicles. The EV3 starts at 39.95 million KRW, while the Casper Electric starts from 27.4 million KRW.
Though vehicles like the EV3 and Casper Electric are highly regarded for their energy-efficient NCM (nickel, cobalt, manganese) batteries, the Atto 3 offers slightly more interior space. Considering its significant price advantage of over 10 million KRW, the Atto 3 may attract cost-conscious consumers. Furthermore, there’s an effort to overcome the negative perception of “Made in China” with improved consumer accessibility.
Jo In-cheol, head of BYD Korea’s passenger division, stated, “The target customers for Atto 3 are young and rational consumers. We’ve worked to set an optimized price for easy access.”
The introduction of the Atto 3 is expected to impact mid-sized domestic car companies like KG Mobility, Renault Korea, and GM Korea significantly. Currently, KG Mobility is the sole manufacturer offering a mid-sized electric SUV, the Torres EVX, priced well over 44.38 million KRW, more than 10 million KRW higher than the Atto 3. Even with the size difference, the price gap is notable, with both cars utilizing LFP batteries, implying similar subsidy levels.
Renault Korea and GM Korea plan to import and sell the “Scenic E-Tech Electric” and “Equinox EV,” respectively, both compact SUVs priced over 40 million KRW in the domestic market. However, high exchange rates pose a challenge to reducing prices.
If BYD successfully penetrates the market, it could affect Hyundai and Kia in the long term, as value-focused consumers shift towards BYD. To support this effort, BYD is establishing showrooms and service networks across the country to ensure quality management. They are also expanding their electric vehicle lineup with releases of the mid-sized electric sedan “Seal” and the mid-sized electric SUV “Sealion 7” this year.
Professor Lee Ho-geun from Daedeok University’s automotive department commented, “Customers emphasizing value for money from mid-sized companies may turn to BYD. Provided there are no quality issues and BYD maintains stable operations, Hyundai and Kia could also experience impacts.”