The release of the compact electric sport utility vehicle (SUV) 'Atto 3' from China's BYD is delayed due to unconfirmed subsidies. Consumers who had expected the vehicle to launch last month and signed pre-contracts are experiencing inconvenience.
Some in the industry point out that BYD, blocked from exporting to Europe and the U.S. due to tariffs, has pushed for a launch in South Korea, which was considered to have lower entry barriers.
According to the automobile industry on the 2nd, BYD Korea began pre-contracting for the Atto 3 at a brand launch event on January 16. However, the vehicle has not yet been delivered to customers.
BYD Korea officially announced the first launch of the Atto 3 at the brand launch event held four days after completing certification procedures (Ministry of Trade, Industry and Energy energy efficiency certification, Ministry of Land, Infrastructure and Transport specification notification, Ministry of Environment emissions and noise certification) on January 12. The company began pre-contracting, claiming deliveries in mid-February, and announced that the number of contracts exceeded 1,000 just a week after the pre-contracting began.
However, at that time, some in the industry noted that mere completion of certification procedures did not fulfill all the launch requirements, indicating that it was a hasty launch. In order for an electric vehicle to be launched in South Korea, in addition to the certification procedures, it must go through the Ministry of Trade, Industry and Energy's eco-friendly vehicle registration and the Korea Environmental Corporation's supply evaluation (the process for confirming electric vehicle purchase subsidies).
During this process, it became known that BYD Korea submitted the basic information necessary for the subsidy confirmation process to the Ministry of Environment on the 28th of last month, increasing the dissatisfaction among pre-contract purchasers. A BYD Korea representative noted, "After completing the input of Atto 3 information on the Ministry of Environment's 'Non-Polluting Home' site, we are waiting for the subsidy calculation results," adding, "We are actively cooperating with the relevant departments to ensure that the subsidy evaluation and eco-friendly vehicle notification can be carried out promptly."
It is reported that the delay in BYD Korea's submission of materials was due to not meeting the strengthened subsidy payment criteria in Korea effective this year. The Ministry of Environment decided to provide subsidies only for electric vehicles that have subscribed to product liability insurance and equipped with battery charge state (SoC) functionality starting this year to prevent electric vehicle fires. However, the Atto 3 does not have such SoC functionality.
BYD Korea has reportedly submitted a letter of commitment to the Ministry of Environment stating that the relevant functionality will be added through a software update within a year. However, if the Ministry does not accept this, it may not receive any subsidies at all. In that case, the price of the Atto 3, projected to be in the upper 20 million won range, will likely become impossible.