November 21, 2024

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People visit BYD's exhibition booth at IAA Mobility held in Munich in Sept. 2023. (Kan Hyeong-woo/The Korea Herald.)

BYD will officially enter the Korean passenger vehicle market early next year, the Chinese electric vehicle maker's Korean office announced Wednesday.

The announcement came after months of speculation over when BYD would launch its passenger EVs in the Korean market. BYD Korea already entered the commercial vehicle market in 2016 and has released electric buses and trucks here since then.

BYD Korea said it has reviewed the feasibility of a passenger vehicle business in Korea over the past few months. According to the EV maker, preparations for the official launch are underway, including the establishment of regional networks for initial sales and services, recruitment for the workforce, vehicle certification, marketing plan and employee training.

“We have been conducting in-depth reviews with executives, staff members and partners who have various experiences to meet the high standards of (Korean) customers,” said Cho In-chul, head of BYD Korea’s passenger car division.

“With our global success experiences and excellent technology, we will diligently prepare to become a brand that can give trust to Korean customers.”

The BYD Korea official added that more details about the launch date and passenger car business would be announced later.

BYD, which began as a battery company in Shenzhen in 1995, has risen to prominence in the global EV landscape. The Chinese EV giant sold a whopping 3.02 million cars last year to single-handedly claim the top EV seller spot in the world for two years in a row, followed by Tesla at 1.81 million cars sold in the same year. BYD’s annual sales reached $84.1 billion last year, up 42 percent on year.

While BYD Koreas’ specific models and targeted launch dates are yet to be announced, the Chinese EV behemoth’s entry into the Korean market is expected to intensify competition in the local EV sector predominantly covered by Hyundai Motor and Kia.

“Although the prices of BYD cars remain undisclosed, they will be a difference maker in the Korean market,” said an official at an auto brand.

“As (BYD) is known for their cost competitiveness, Hyundai and Kia will have to face a bigger challenge if Korean customers deem the Chinese EVs as an auto brand that can offer the same level of technology and comfort at a lower cost.”

By Kan Hyeong-woo (hwkan@heraldcorp.com)