Chinese electric cars 'invade', Korean manufacturers worried

South Korean auto industry officials are concerned that with the number of imported cars from China increasing more than eight times compared to the same period in 2023, the domestic market could be strongly affected.

Data from the Korea International Trade Association (KITA) revealed that Chinese EV imports reached $848 million (1.12 trillion won) during the first seven months of this year, accounting for 66 percent of total imports of such cars. Of particular concern

BYD - China's largest electric vehicle manufacturer has just announced plans to enter the Korean market in the second half of 2024. (Source: Reuters)

Statistics released by the Korea International Trade Association (KITA) show that China's electric vehicle imports from January to July 2024 reached 1,120 billion won (848 million USD), accounting for 66% of Korea's total electric vehicle imports.

The surge in Chinese electric vehicles is fueled by the rise of the Model Y, a mid-size electric sport utility vehicle (SUV) produced by Tesla's Gigafactory in Shanghai, China.

Tesla has also previously introduced the Model 3 EV from China. Both of these cars are very popular and have very competitive prices.

Experts and officials in the South Korean electric vehicle industry are calling on the government to quickly impose barriers to ensure a fair competitive environment. Most Chinese electric vehicles are equipped with lithium iron phosphate (LFP) batteries, which have a clear advantage in price competitiveness. However, LFP batteries cannot be recycled, so experts are urging the South Korean government to impose additional costs for environmental treatment.

Kim Pil-soo, a professor of automotive technology at Daelim University, said South Korean regulators should consider imposing an environmental improvement fee on electric vehicles with LFP batteries and build an ecosystem that ensures fair competition for both domestic and imported electric vehicle makers.

BYD, China's largest electric vehicle maker, has just announced plans to enter the Korean market in the second half of 2024, which has also worried Korean manufacturers.

South Korean electric vehicle makers' global sales share fell to 9.6% in the first half of 2024, down 0.8% year-on-year, as Chinese companies rapidly expanded their footprint overseas.

Source: https://baoquocte.vn/xe-dien-trung-quoc-do-bo-nha-sa-n-xuat-ha-n-quoc-lo-ngai-287189.html