Chinese automakers gain ground in S. Korea

Chinese automotive brands are making fresh inroads into South Korea's highly competitive auto market, as their advances in intelligent technologies and improving brand perception are increasingly acknowledged by local consumers.

According to data released this month by the Korea Automobile Importers and Distributors Association, or KAIDA, China ranked among the top three countries by imported vehicle registrations in April, marking the first time that Chinese automakers have surpassed their Japanese counterparts in monthly registrations in South Korea.

Notably, the milestone was achieved largely on the strength of a single brand. Chinese automaker BYD registered 2,023 vehicles during the month, exceeding the combined registrations of Japan's three major brands — Lexus, Toyota and Honda — which together recorded 1,974 units, according to KAIDA.

"The key driver behind this growth is the leading position Chinese brands have established in electrification, intelligent technologies and product innovation, which aligns closely with the strong demand among young South Korean consumers for smart mobility solutions," said Zhang Hong, a senior new energy vehicle industry expert at the China Automobile Dealers Association. "South Korean consumers no longer choose Chinese brands simply because they are affordable. What they value is overall value for money."

Chinese brands are able to offer highly competitive pricing while maintaining strong quality and reliability, meeting consumers' dual expectations for both practicality and cost-effectiveness, he added.

Beyond product competitiveness, Zhang noted that the South Korean market's higher expectations for after-sales services, dealership coverage and customer experience make it a valuable test of automakers' overseas operational capabilities.

In this regard, the performance of Chinese brands in South Korea also demonstrates the growing maturity of their overseas sales and service networks, he added.

The momentum also aligns with a broader shift in South Korean consumer preferences as vehicle electrification accelerates across the country.

According to KAIDA data, NEV sales in South Korea increased from 68,800 units in 2016 to 788,900 units in 2025. Over the same period, the share of NEVs in total vehicle sales rose from 4.4 percent to 51.9 percent.

The growing acceptance of electric vehicles has created new opportunities for Chinese manufacturers, with Chinese-made models accounting for 33.9 percent of newly registered EVs in South Korea last year, up sharply from 7.5 percent in 2023.

Against this backdrop, Chinese automakers have been accelerating their investments and market expansion efforts in the country.

BYD, for example, has rapidly built its presence since launching its first passenger vehicle deliveries in South Korea in April 2025. By March 2026, the company had sold more than 10,000 vehicles in the market, achieving the milestone in just 11 months and setting a new record among imported car brands in South Korea.

Meanwhile, Zeekr officially entered the South Korean market in May by opening its first flagship store in Seoul's Gangnam district. The company introduced its electric 7X SUV as its first model in the country, with orders exceeding 500 units since pre-sales began on June 5.

Looking ahead, Zhang said Chinese automakers are expected to continue gaining market share in South Korea as consumers become increasingly receptive to high-quality EVs and smart mobility technologies.

"Chinese brands are likely to further expand their presence in South Korea over the next year," Zhang said. "At the same time, they will need to closely monitor changes in local policies and market dynamics to sustain long-term growth."

lijiaying@chinadaily.com.cn