BYD’s global surge hits a speed bump in South Korea

The Chinese automaker struggles to translate affordability into appeal in a brand-driven market

China’s BYD sold a record 4.2 million electric vehicles worldwide last year, cementing its position as the world’s top EV maker. Yet the Chinese powerhouse has struggled to convert that global momentum into success in South Korea, a market where brand cachet can outweigh price.

The company entered Korea in January with the Atto 3 compact SUV, positioned to undercut local rivals. The debut was promising: BYD briefly topped the imported EV sales chart in April with 543 units sold. But sales have since slumped to about 200 a month. The Korea Automobile Importers & Distributors Association says BYD has sold 1,578 vehicles so far this year, ranking 14th among imported brands.

Guests look at BYD’s Atto 3 and Seal electric vehicles during an open day event at the Chinese Embassy in Seoul, South Korea, on July 22, 2025./Yonhap

Price remains BYD’s core strategy. The Atto 3 starts at 31.5 million won ($23,300) before subsidies and can be purchased in the high-20 million won range after incentives. With a 321-kilometer range and comparable performance to Kia’s EV3 Standard, the car is about 8 million won cheaper.

But affordability alone has not been enough. Korean consumers, analysts say, are wary of untested Chinese brands in a market where image and after-sales reliability shape purchasing decisions. “Performance isn’t far behind competitors, but the fact that it’s a Chinese car holds it back,” said an executive at a foreign automaker. “In Korea, the ‘image factor’ matters, and unless BYD takes pricing even lower, it won’t overcome that gap.”

BYD is preparing a fresh push in the second half of the year with models aimed more squarely at Korean preferences. The Seal sedan is already available, and the Sealion 7—a midsize SUV positioned against Tesla’s Model Y—will arrive later this year. The company also plans to expand its footprint to more than 30 showrooms and 25 service centers nationwide. While still short of Mercedes-Benz’s 74 service centers, analysts say stronger after-sales infrastructure could bolster BYD’s case as a value-for-money challenger.