Tesla Jan.-July sales down 43% YoY in Korea amid intense competition

Tesla Inc.’s Model Y. [Courtesy of Tesla]

Tesla Inc., a U.S. electric vehicle (EV) manufacturer, has seen its sales in South Korea plunge by more than 40 percent in the first seven months of this year from a year ago despite new model launches and increased services.

According to data from the automotive industry and the Korea Automobile Importers & Distributors Association on Sunday, Tesla sold a total of 3,846 vehicles in Korea between January and July this year, down 43 percent from a year ago and 67 percent from two years ago.

In contrast, other established automakers in the EV segment have been performing well.

Tesla’s slump comes despite a series of marketing efforts this year.

In March, Tesla introduced its premium electric sedan, the Model S, and its midsize electric sports utility vehicle (EUV), the Model X.

In July, the automaker also launched the midsize electric SUV, the Model Y, which is rear-wheel drive (RWD) and equipped with lithium iron phosphate (LFP) batteries.

Due to its production location in China, the Model Y is priced lower than previous models, starting at 56.99 million won ($44,000). Additionally, Tesla reinstated its “Supercharging” program in Korea, offering three years of free EV charging for customers.

Some market watchers say that the recent release of the China-made Model Y may play a significant role in Tesla’s performance in the coming months.

However, some experts argue that Tesla’s strategy of reducing EV prices may have unintended consequences, including undermining customer loyalty and potentially reducing local demand.

Furthermore, as traditional automakers plan to introduce a variety of new EV models in the highly competitive market, Tesla’s challenges in Korea may persist for the time being, they say.