Chinese finished-car makers are accelerating their push into the domestic market by expanding showrooms and service centers. They judge that if the influence of subsidies diminishes in the domestic EV market going forward, the value of cost-effective Chinese EVs will stand out more, and they are seeking to build a long-term growth base by boosting brand recognition and service quality.
According to the finished-car industry on the 23rd, BYD currently operates 34 showrooms and 20 service centers. BYD's number of showrooms is on par with long-established European and Japanese import brands in Korea such as Volvo (39), Audi (34), Toyota (33), Volkswagen (26), and Mini (22).
BYD's domestic sales in the first half totaled 11,675 units, a 807.9% surge from a year earlier. That ranks fourth among import brands after Tesla (56,139), BMW (39,150), and Mercedes-Benz (29,776). Last month, it sold 4,652 units, setting a monthly record.
BYD was recently the only brand in the passenger-car institutional sector to be excluded from government subsidies after it failed to meet criteria such as domestic supply chain contribution and after-sales capabilities in the Ministry of Climate, Energy and Environment's assessment of EV supply program operators.
However, the industry widely expects BYD's growth momentum will not easily falter, as it has secured ample sales and after-sales infrastructure such as showrooms and service centers and has moved quickly by offering its own subsidies of 1.26 million won to 1.52 million won.
Zeekr, the premium brand of Geely Automobile Holdings, is also pushing ahead boldly with investment in Korea. Although vehicle deliveries have not yet begun, it currently operates 11 showrooms and 3 service centers domestically. On the 13th, it opened Zeekr Gwangju House, the first showroom in the Honam region, along with the Gwangju service center.
Zeekr's first model for sale in Korea, the mid-size electric sport utility vehicle (SUV) 7X, fell out of this year's subsidies due to certification delays. Even so, it has logged more than 1,000 preorders.
Other Chinese finished-car corporations are also preparing to enter the Korean market. Chery Automobile Co., China's No. 1 exporter, is proceeding with establishing a legal entity and hiring to sell Omoda and Jaecoo brand electric SUVs in Korea starting in the second half of this year. Hongqi, a luxury brand, is also said to be exploring a launch.
In the import-car industry, the view is that although the government recently tightened the criteria for subsidies, making entry into the domestic market more challenging, Chinese corporations are expanding infrastructure investment with an eye on long-term growth.
As EV adoption rises, subsidies inevitably decrease. From a long-term perspective, the calculation is that the market position of Chinese EVs, which combine low prices with strong technology, could strengthen, so they are pressing ahead with investment.
In fact, other countries have recently either tightened subsidy criteria in succession or scrapped the programs altogether. China fully abolished subsidies at the end of 2022. Germany saw EV sales fall after abolishing subsidies in 2024, then reinstated them last year but raised the bar by applying income thresholds, among other measures.
According to Kaizuyu Data Research Institute, the number of EV registrations in Korea in the first half of this year was 198,969, up 112.6% from the same period a year earlier (93,568). EVs' share of all new cars also jumped from 11.1% to 23.3%.
Because domestic brands such as Hyundai Motor and Kia hold 58% of the overall EV market, analysts say Chinese makers, which sell relatively cost-effective products, have ample room to make inroads.
An import-car industry official said, "Subsidies were introduced to raise EV adoption, so as sales grow they will naturally be reduced or abolished," adding, "Chinese companies judge that the less subsidies matter to sales, the more favorable it is for them with strong price competitiveness, so they are expanding investment in Korea."