Equipped with LFP battery for cost-effectiveness
Tesla produced in China is cheaper by more than 20 million won
Commercial vehicles also account for 6 of the top 10 models.
For the past three months, Chinese electric vehicles have ranked first in domestic imports, surpassing Germany and the United States. It is analyzed that the popularity of Chinese electric vehicles, such as Tesla’s Model Y, which have drastically lowered prices, has gradually expanded in Korea.
According to the Korea International Trade Association on the 26th, Korea’s electric vehicle imports from January to October this year totaled $1.945 billion (about 2.54 trillion won), a 23.3% increase over the same period last year. By country, the order is Germany (USD 788 million), China (USD 538 million), and the United States (USD 459 million).
If we narrow it down to the past three months, Chinese electric vehicles have become the largest importer. In terms of July imports, China ranked third, followed by the United States ($63 million), Germany ($26 million), and China ($18 million). However, in August, China ($151 million) ranked first, followed by Germany ($77 million) and the United States ($28 million). In September and October, Chinese electric vehicles were imported worth $117 million and $172 million, respectively, far surpassing Germany and the United States. China’s electric vehicle imports were two-sevenths of the U.S. in July alone, but in October they exceeded 17 times the U.S. amount.
The rapid increase in Chinese electric vehicle imports from August was largely due to the rear-wheel drive (RWD) of the Chinese-made Tesla Model Y. This vehicle has been released in Korea since mid-July. This model, produced at the Tesla Gigafactory in Shanghai, China, is equipped with Chinese lithium, phosphate, and iron (LFP) batteries and is more than 20 million won cheaper than the existing model. Including domestic electric vehicle subsidies, it can be purchased for around 40 million won.
According to Kaizu U Data Research Institute, as of September, 4,206 units of Tesla Model Y were sold, showing the highest sales volume among all imported cars, including electric vehicles as well as gasoline and diesel models. There were only 3 Model Y long range models and 1 performance model, and the rest were all inexpensive RWD models. Following Model Y, the most sold imported cars were Mercedes-Benz ‘E-Class’ with 3,511 units and Volvo ‘XC60’ with 899 units.
It is expected that the dominance of Chinese electric vehicle models with ‘cost-effectiveness’ in the domestic market will gradually expand. Currently, Polestar’s electric vehicle ‘Polestar 2’ produced at a Chinese factory is gaining popularity, with 2,794 units sold last year. The market share of Chinese electric vehicle companies in the domestic commercial vehicle market, including buses and trucks, is also increasing. According to Kaizuyu Data Research Institute, the most sold imported commercial vehicle model in Korea last month was China’s Geely’s small electric cargo vehicle ‘Sea’. It was calculated that among the top 10 imported commercial vehicle models, 6 are Chinese brands.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.