The Tesla Model Y has sold over 20,000 units as of July this year, threatening the Mercedes-Benz E-Class, which has held the record for the highest sales of imported cars for 11 years. Whether this trend will continue depends on the electric vehicle subsidies, with evaluations suggesting a lack of new cars that could challenge Tesla in the current market.
According to Kaizu Yudata Research Institute, 26,585 Teslas were newly registered domestically as of July this year, ranking third after BMW and Benz. In just last month, 7,357 units of the Tesla Model Y and Model 3 were sold, despite being made in China.
The one driving Tesla's success is the mid-sized electric Sports Utility Vehicle (SUV) Model Y. As of July this year, a total of 21,991 units were sold, accounting for 82.7% of Tesla's overall sales. Following that, 4,430 units of the mid-sized electric sedan Model 3, 108 units of the mid-sized SUV Model X, and 15 units of the Cybertruck were recorded.
Of the Model Y and Model 3 sold in Korea this year, 99% were imported from China. Only one unit was produced at the U.S. factory. The Model Y, which entered Korea for the first time in 2019, imported only the standard trim from the Tesla factory in China, but starting this year, all rear-wheel drive (RWD), long-range, and performance versions are being brought in from China. All trims of the Model 3 are also produced in China. The Model S, Model X, and Cybertruck are made in the U.S.
Industry analysts suggest that the loyalty to Tesla has surpassed the aversion to products made in China. This year, the sales volume of the Aito 3, a small electric SUV launched by BYD, China's largest electric vehicle manufacturer, was only 1,534 units in the domestic market.
A representative from an import car company noted, "The aversion to 'Made in China' seems to be outweighed by the brand, technological prowess, and value for money affecting consumer purchases more significantly."
Analysis suggests that Tesla's unique delivery method has also supported the surge in sales. To sell 7,000 units a month, they need to hand over 350 cars to customers each day for 20 days. Other import car companies deliver vehicles directly from showrooms to customers, meaning they need at least 20 showrooms to sell 7,000 units a month. However, Tesla, which has only seven showrooms, allows customers to pick up vehicles directly from the IKEA Gwangmyeong store.
The Tesla Model Y is also eyeing the title of best-selling car. The sales volume in the past year for the E-Class, which held the highest sales volume for a single model in the imported car market for 11 years, was 25,973 units (combined for all trims). If this trend continues, the Model Y is expected to surpass last year's E-Class sales volume within this month.
The key to maintaining Tesla's dominance lies in electric vehicle subsidies. According to the comprehensive website for non-polluting vehicles, 69,646 electric cars that received subsidies were counted as of the 1st from 159 local governments nationwide. This is about 72.8% of the 95,683 units announced for private supply.
Kia is expected to launch the mid-sized electric SUV EV5 soon, while Hyundai Motor has released the new Ioniq 6. These two models are projected to compete with Tesla for the remaining subsidies.
A representative from a finished car company said, "Tesla's popularity stems from its technology, which feels affordable at around 50 million won, and other companies need to create cars that offer comparable value for money."