“BYD, Following Japan, Expected to Initially Struggle in South Korea as Well… Potential to Target Niche Markets”

KAMA Report… Korea and Japan Share High Domestic Market Share and Low EV Ratio
“BYD May Target Fleet and Rental Cars… Must Prevent Erosion of Domestic Competitiveness”,
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BYD Electric Car
[Reuters=Yonhap News],
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, ‘(Seoul=Yonhap News) Reporter Hong Kyubin – There is an outlook that China’s largest electric car maker BYD may initially experience sluggish sales in Korea, similar to its performance in the Japanese passenger car market.’,
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, ‘However, there is also an analysis that BYD could target niche markets such as rental and corporate cars, which may threaten the competitiveness of the three mid-sized domestic companies.’,
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, ‘The Korea Automobile Mobility Industry Association (KAMA) stated in their “BYD Japanese Market Status and Implications for the Domestic Industry” report on the 3rd that “considering BYD’s poor performance in Japan, it is expected to achieve limited success initially in the domestic market as well.”‘,
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, ‘KAMA pointed out that BYD has been struggling since it declared its entry into the Japanese market in July two years ago.’,
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, ‘Despite aggressive sales strategies such as localizing its sales network, hiring famous actors for advertisements, and providing subsidies for its electric cars, BYD’s passenger car sales in Japan totaled only 3,188 units over approximately two years.’,
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, ‘This year, the cumulative total for the first three quarters increased by 96.6% compared to last year, reaching 1,742 units, but still significantly below the sales target of 30,000 units annually by 2025.’,
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BYD
[EPA=Yonhap News],
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, ‘KAMA believes that the poor performance experienced by BYD in Japan is likely to be repeated in Korea.’,
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, ‘Korea and Japan have similar market environments with high domestic market share, low electric vehicle (EV) ratios, and negative perceptions of Chinese products.’,
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, ‘From January to September this year, imported vehicles accounted for 19% (205,000 units) of the 1,053,000 newly registered passenger cars domestically, while electric vehicles accounted for 9% (108,000 units).’,
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, ‘In Japan, last year’s imported passenger car market share was 6%, and the proportion of battery electric vehicles (BEVs) was around 2%.’,
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, ‘KAMA noted that “in a recent survey on intentions to purchase new cars, only 9% considered Chinese brand electric cars as an option,” and analyzed that similar consumer preferences against Chinese products seen in Japan are likely to be observed in the domestic market.’,
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, ‘Additionally, KAMA suggested that BYD’s electric cars equipped with lithium iron phosphate (LFP) batteries might lose some price competitiveness due to potential disadvantages in subsidy allocation.’,
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BYD Factory
[Reuters=Yonhap News],
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, ‘However, KAMA predicted that BYD might target niche markets such as rental and corporate cars, leveraging its high brand recognition and appealing to younger consumers.’,
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, ‘Therefore, KAMA stated that “(companies like Korea GM, KG Mobility, and Renault Korea) and the domestic industry must establish investment and cooperation plans to prevent a decline in market competitiveness.”‘,
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, ‘The market share of the three mid-sized companies among newly registered electric cars in Korea from January to September this year was 4.9%.’,
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, ‘KAMA mentioned the possibility of other Chinese brands like ZEEKR and Leapmotor expanding into the domestic market and stressed, “It is time for the government and the industry to collaborate and devise strategies to ensure the competitiveness of the electric vehicle sector.”‘,
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, ‘[email protected]’,
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