Lower prices, solid performance: Chinese EVs find foothold in Korea

For nearly two decades, Lee Gwang-jae has driven passengers across Seoul in taxis made by Korean automakers. Last August, he traded in his Hyundai EV6 for the BYD Seal, a midsize electric sedan produced by China’s largest EV manufacturer.

Pictured is a Seal, a midsize electric sedan by Chinese automaker BYD, which 19-year veteran private taxi driver Lee Gwang-jae purchased in August 2025. [LEE SU-JEONG]

For nearly two decades, Lee Gwang-jae has driven passengers across Seoul in taxis made by Korean automakers. Last August, he traded in his Hyundai EV6 — which he had driven after the Kia Niro EV — for the BYD Seal, a midsize electric sedan produced by China’s largest EV manufacturer.

Lee said his decision rested on two considerations: performance and price. His choice highlights the growing appeal of lower-priced Chinese EVs among Korean consumers.

The Seal carries a list price of 46.9 million won ($32,000) in Korea. By combining national EV subsidies, incentives available to taxi drivers and a value-added tax refund, Lee reduced his effective purchase price to 37.21 million won.

“The subsidy is smaller than for domestic cars, but the initial price is lower, so it works out in my favor,” he said.

Lee said his assessment was shaped by his experience driving foreign vehicles during a decade as a corporate chauffeur.

“I’ve driven many imported cars [...], and I’m satisfied with the Seal’s ride comfort and build quality,” he said. “Passengers often ask what kind of car it is, and when I tell them it’s Chinese, they’re surprised.”

Data suggest Lee is far from alone. A total of 65.2 percent of BYD buyers last year were in their 40s and 50s, the JoongAng Ilbo found by analyzing sales figures from the Korea Automobile Importers & Distributors Association. Among all 26 imported brands sold in Korea, Ferrari recorded the highest share of buyers in that age group, at 70.7 percent. But when the comparison is limited to brands with more than 1,000 individual annual sales, BYD ranked first.

The interior of taxi driver Lee Gwang-jae's Seal, a midsize electric sedan by Chinese automaker BYD [LEE SU-JEONG]

Analysts say the age profile matters. Middle-aged consumers tend to buy cars for long-term use rather than novelty, making their choices a key test of whether Chinese automakers can sustain growth in the Korean market.

“Buyers in their 40s and 50s believe Chinese cars have reached a certain threshold in quality, not just in price,” said Cho Chuel, a senior researcher at the Korea Institute for Industrial Economics and Trade. If sales accumulate without major problems, he added, adoption is likely to expand.

BYD is moving to broaden its presence in Korea. The company plans to introduce the Dolphin, a compact electric hatchback, later this year. Under the Ministry of Environment’s 2026 EV subsidy guidelines, the Dolphin qualifies for a national subsidy ranging from 1.09 million to 1.32 million won.

The company’s overseas performance shows similar momentum. In Japan, a market often described as inhospitable to imported vehicles, BYD sold 3,870 units in 2025, a 62 percent increase from the year before. The Nikkei reported that BYD plans to introduce a compact "kei car" EV in Japan this summer to accelerate its expansion.

A driver charges an EV at a charging station in Seoul on Aug. 29, 2025. [NEWS1]

Some analysts argue that the relatively smaller subsidies available for Chinese EVs could ultimately strengthen their competitiveness in Korea. As government support tapers off, lower-priced models may prove more resilient.

When most EV subsidies were exhausted in December, the top three newly registered models were Tesla’s Model Y with 3,478 units, according to data from automotive information platform NICE Bluemark. The Model Y was followed by the Seres 7 with 641 units and BYD’s Atto 3 with 459 units. Kia’s PV5 ranked fifth with 326 units. While registrations of the Seres 7 declined 5.7 percent from the previous month, PV5 registrations fell 74.6 percent.

“Subsidies can’t keep expanding indefinitely,” Cho said. “If Hyundai and Kia don’t secure price competitiveness now, the structure will increasingly favor cheaper Chinese vehicles.”

Still, skepticism toward Chinese cars remains. Last year, a notice banning Chinese EVs from a parking garage at an apartment complex in Siheung, Gyeonggi, sparked controversy.

Policy changes could also affect growth momentum. Beginning this year, the Ministry of Environment revised how it evaluates importers and manufacturers for subsidy eligibility, assessing factors such as business sustainability and contributions to job creation. Companies must pass the review annually to qualify.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY LEE SU-JEONG [kim.juyeon2@joongang.co.kr]