IANS | 18 Jun, 2024
The expected entry of China's BYD Auto into the South Korean consumer
electric vehicle (EV) market this year will likely intensify competition within
the low-cost segment of the market, which globally has seen a stagnation in
growth as of late due to the so-called EV adoption chasm, according to industry
watchers on Tuesday.
The Chinese EV maker has applied for emissions and noise certification
for its midsized EV sedan Seal with the National Institute of Environmental
Research under the South Korean environment ministry on June 5, marking the
beginning of BYD's domestic release procedure.
The process, which checks factors, such as the driving range on a single
charge, is known to take around two to three months. Performance evaluations
linked to a review for EV subsidies are conducted separately by the Korea
Environment Corp, reports Yonhap news agency.
In terms of size and performance, BYD's Seal model, whose entry price
trim is set at 179,800 yuan ($24,730), is comparable to Tesla's Model 3 and
Hyundai Motor's Ioniq 6.
Market watchers expect the model to become eligible for EV subsidies
when released. Some, however, note the use of lithium iron phosphate (LFP)
batteries in the model could work against the model due to the low recyclable
value of LFP batteries.
Other more affordable BYD models, including the Dolphin hatchback and
the Atto 3 compact crossover, are also reportedly being considered for release
in the country.
BYD has already applied for trademarks for six models in the domestic
market, including those for the Seal, Dolphin and Atto models.
If BYD successfully launches its passenger EV cars in South Korea with
competitive pricing, it could impact the domestic electric vehicle market,
currently dominated by Hyundai Motor and Kia.
South Korean automakers have already seen a decrease in the domestic EV
market share, dropping 3.5 percentage points to 76.6 percent last year,
especially in line with the release of Tesla's Model Y vehicles produced in
China.
Local automakers, too, are moving to introduce more affordable models
with a better value proposition, notably improved battery capacity.
Hyundai plans to unveil the EV version of its mini SUV Casper at the
upcoming Busan International Mobility show later this month. Kia's EV3, the
company's third and latest EV model after the larger EV6 and EV9 models, is
widely expected to become a hit.