As Tesla and BYD have ignited the imported electric vehicle market with aggressive pricing, premium EV brands priced at 50 million won or more, such as Polestar, are quietly advancing, with record first-quarter sales. Premium brands expect a virtuous cycle in which consumers who entered EVs with mass-market models will move up to higher-tier models later, and they are accelerating the rollout of new EVs.
On Apr. 7, according to Polestar Korea, the midsize electric sport utility vehicle (SUV) Polestar 4 sold 684 units in March. It was the highest monthly sales since first deliveries in Korea in Nov. 2024. Cumulative first-quarter sales reached 952 units, up 98% from the same period a year earlier (481 units), also a quarterly record. The 2026 Polestar 4 starts at 66.9 million won, placing it among premium EVs.
Other premium imported EVs are also growing. According to the Korea Automobile Importers & Distributors Association (KAIDA), Audi's compact SUV Q4 45 e-tron, which starts at 66.3 million won, sold 376 units in March alone, placing it, along with the Polestar 4, in the top 10 monthly best-selling EV models. BMW's midsize sedan i5 posted cumulative first-quarter sales of 828 units, a 127% surge from a year earlier. Porsche's midsize SUV Macan Electric, launched in September last year, recorded first-quarter sales of 209 units.
What is currently driving growth in the domestic imported EV market are mass-market models priced around 50 million won. In the past month, the No. 1–4 best-selling EVs were Tesla's Model Y Premium, Model 3 Premium Long Range, Model 3, and Model Y Premium Long Range. They were followed by BYD's Sea Lion 7 (No. 5) and Dolphin (No. 7), and Tesla's Model 3 Performance (No. 8). Seven of the top 10 were Tesla and BYD vehicles.
Tesla and BYD are expanding the EV market through aggressive price competition. Early this year, Tesla cut prices for the midsize sedan Model 3 and Model 3 Premium Long Range to 41.99 million won and 52.99 million won, respectively. The starting price for the midsize SUV Model Y Premium Long Range also fell to 49.99 million won. BYD priced the small hatchback Dolphin in the 20 million won range. As a result, other brands are joining the EV price battle. Volvo Car Korea recently lowered the price of the EX30 to the 30 million won range.
Brands offering premium EVs quietly welcome the expansion of these mass-market models. An official at a premium brand said, "Consumers who choose an EV once tend not to return to internal combustion cars," and added, "Customers who first enter EVs with mass-market models are more likely to look for premium models later, so we view the growth of Tesla and BYD positively." The view is that they are helping to lower the entry barrier to EVs.
In fact, the imported EV market is growing rapidly. First-quarter imported EV sales reached 31,498 units, accounting for 38.4% of the overall imported car market. That is more than double the 16.6% share in the same period a year earlier. Year-over-year sales growth was 213%, easily outpacing hybrid cars (5.1%). This also contrasts with gasoline and diesel, which fell 18.7% and 31.4%, respectively.
Accordingly, premium brands are speeding up the introduction of new EVs. Mercedes-Benz will unveil the first all-electric model of the midsize C-Class, the All-New Electric C-Class, for the first time in the world in Seoul this month, and plans to launch electric versions of the compact sedan CLA and the midsize SUV GLC within the year. BMW Korea will launch the midsize SUV The New BMW iX3 in the third quarter this year, and Porsche Korea will launch the large midsize SUV Cayenne Electric in the second half. Polestar Korea also plans to launch the SUV Polestar 3 and the sedan Polestar 5 in the second and third quarters, respectively.