KIET: Chinese electric vehicles will account for 33.1% of the Korean market in 2024

A report released this month by the Korea Institute for Industrial Economics (KIET) showed that Chinese electric vehicles have risen rapidly in the Korean market, accounting for 33.1% of the market share. The report pointed out that the import of Chinese-made Teslas into South Korea was the main reason why the share of Chinese electric vehicles in the Korean market rose from 14% last year to 33.1% this year.

Chinese electric vehicles have always dominated the global market, accounting for more than 68% of global production last year and in the first half of this year. In the Thai market, 84.2% of electric vehicle sales last year came from Chinese brands; in the European market, the share of Chinese electric vehicles exceeded 18% in the first half of this year.

The institute's report also highlighted the significant price difference between cars made in China and those produced in other countries.

The average price of Chinese-branded electric vehicles in major markets is only half that of other brands. This price competitiveness is attributed to the well-developed domestic parts supply chain. More than 70% of the world's battery production capacity is concentrated in China.

The institute stressed that the fundamental problem is the high price of South Korean electric vehicles, which cannot be solved by subsidies alone. It also emphasized the need for innovation in production methods and supply chain efficiency, and recommended that a thorough analysis be conducted first to understand the source of China's price competitiveness .

In response to the slowdown in EV and battery sales in South Korea and the rise of EVs in China, the institute believes that there is an urgent need to formulate a strategy, recommending the pursuit of differentiation in various aspects such as autonomous driving, smart functions and design, while emphasizing the need to adjust investment plans and operating plans based on market trends and new forecasts for the BEV market.

Zikuai Technology