[서울=뉴스핌] Reporter Seunghyun Kim = As Chinese capital is pouring into the Korean electric vehicle market, which is experiencing a ‘chasm’ (temporary stagnation in demand) due to a series of fires and reductions in subsidies, there is tension in the Korean automobile industry as well.
China’s BYD, the world’s largest electric vehicle producer, officially announced its intention to enter the Korean passenger car market early next year. In addition, it was a subsidiary of Volvo, but after Volvo handed over its stake, Polestar, majority-owned by China’s Geely Automobile, began to target the Korean market in earnest.
◆ BYD holds an official event to launch Korean passenger cars in January next year…’World’s No. 1 electric vehicle brand’
According to the automobile industry on the 25th, BYD met with reporters at its headquarters in Shenzhen, China on the 21st and said, “We plan to hold an official event to launch a Korean passenger car in January next year.”
BYD Korea has already entered the Korean market in 2016 and has been providing eco-friendly vehicles, parts, and services focusing on commercial vehicle businesses such as electric forklifts, electric buses, and electric trucks.
BYD did not specifically reveal the passenger car lineup to be launched in Korea, but at an event in January next year, it will launch the compact SUV ‘Ato3’ (Chinese name: Yuan), the mid-sized sedan ‘Seal’ (Chinese name: Haibao), and the hatchback ‘Dolphin’ (Chinese name: It is reported that the company is considering releasing 3 to 4 models, including the off-road SUV ‘B5’ (Chinese name: Bao 5).
BYD Korea has been reviewing the domestic business feasibility of its passenger car brand from various angles over the past few months. Currently, preparations for the official launch of the BYD brand in Korea are underway with the goal of early 2025, including establishing a regional network for initial passenger car sales and service, recruiting personnel, vehicle certification, marketing plans, and employee training.
Jo In-cheol, CEO of BYD Korea’s passenger vehicle business division, said, “We have been conducting an in-depth review with executives and employees with diverse experience and partner companies to meet the high expectations of domestic consumers.” He added, “We can give trust to Korean consumers with our excellent technology along with our global success experience.” “We will prepare diligently to become a well-known brand,” he said.
BYD currently has a cumulative R&D investment of $19.4 billion (approximately 27 trillion won) and operates a research and development (R&D) workforce of more than 100,000 people.
It is a global automobile company that possesses core technologies such as batteries, motors, and electronic control devices, and has a vertically integrated structure capable of in-house production from the production of batteries and other parts to the manufacture of finished vehicles.
BYD achieved global sales of 3.02 million units of eco-friendly vehicles in 2023, and emerged as a leading global electric vehicle company by posting sales of $69.3 billion (approximately KRW 97 trillion) by the third quarter of this year, up 18.94% compared to the same period last year.
◆ Polestar to produce at Busan factory starting next year…putting itself at the forefront as a ‘Swedish premium brand’
Swedish premium electric vehicle brand Polestar has also completed preparations and has begun targeting the Korean market in earnest.
Polestar is a company that started by tuning Volvo cars to high performance and participating in racing. As an official partner of Volvo since 2009, it has launched high-performance versions of Volvo’s vehicles under the brand ‘Polestar Performance’.
Afterwards, Volvo spun off Polestar in line with the global expansion of electric vehicles, and Polestar became a subsidiary of Volvo. Then, Volvo was acquired by China’s Geely Automobile, and Volvo transferred its shares to its parent company, Geely Automobile, and Geely Automobile owns most of Polestar’s shares.
However, currently major tasks such as vehicle design, engineering, and safety testing are handled at Polestar’s headquarters in Gothenburg, Sweden.
Currently, Polestar 2 and Polestar 4 are being sold in Korea. Polestar will produce ‘Polestar 4’ at Renault Korea’s Busan plant starting next year and plans to have five electric vehicle systems by 2026, including Polestar 3, which will be released in the domestic market next year.
As BYD and Polestar, backed by Chinese capital, begin to enter the domestic market in earnest, there is tension in the domestic automobile industry.
In particular, despite having strong capital power at their backs, they are preparing a high-end strategy rather than a marketing strategy focusing on ‘low-priced’ products.
BYD plans to open the wallets of Korean consumers by emphasizing its image as the ‘world’s No. 1 electric vehicle brand’ in Korea, where there is a strong negative perception of ‘made in China’ products, and especially in the automobile market where brand value is important.
Polestar is going one step further and putting the ‘Swedish premium brand’ at the forefront. The strategy is to capture the hearts of Korean consumers with a Scandinavian design that is rare in Korea, emphasizing that safety is the most important value and that it has inherited the recognized image of Volvo.
**Do you believe the entry of Chinese EV manufacturers will lead to a price war in the Korean EV market, ultimately benefiting consumers, or will it primarily benefit the new entrants?**
## World Today News Exclusive: The Chinese EV Wave Hits Korea
**Host:** Welcome to World Today News. The Korean electric vehicle market is facing a fascinating wave of change, with Chinese automotive giants BYD and Polestar set to make a significant impact. Joining us today are two experts who can shed light on this exciting development: [Guest 1 Name], an automotive industry analyst with extensive experience in the Korean market, and [Guest 2 Name], a specialist in international business and trade relations with a focus on China.
**Section 1: The Rise of Chinese EVs in Korea**
**Host:** Let’s begin by discussing the context surrounding this entry of Chinese EV manufacturers into Korea. [Guest 1], we’ve seen a cooling down in the Korean EV market recently. What factors have contributed to this, and how might the entry of BYD and Polestar be perceived in this climate?
* **Open-ended question:** Do you think the challenges faced by the Korean EV market create an opportunity for these Chinese manufacturers, or will they face an uphill battle?
**Guest 1:**
**Host:** [Guest 2], from a broader perspective, how do you see this trend of Chinese automotive companies expanding globally? What are the possible motivations and long-term goals behind this expansion?
* **Open-ended question:** How might the Korean public perceive cars from BYD and Polestar, especially considering the existing perceptions of “made in China” products?
**Guest 2:**
**Section 2: BYD’s Strategy: “World’s No. 1” Appeal**
**Host:** We’ve learned that BYD plans to emphasize its status as the “world’s No. 1 electric vehicle brand” in Korea. [Guest 1], how successful do you think this strategy will be in a market dominated by established brands like Hyundai and Kia?
* **Open-ended question:** Will BYD’s focus on affordability, as seen in other markets, be a key selling point for Korean consumers? How might they balance this with their “premium” image?
**Guest 1:**
**Host:** [Guest 2], from a global perspective, how does BYD’s brand positioning compare to other Chinese EV manufacturers expanding internationally?
* **Open-ended question:** Do you see any potential cultural or marketing challenges BYD might face in tailoring its brand message for the Korean market?
**Guest 2:**
**Section 3: Polestar’s Premium Approach: “Swedish Design with Chinese Backing”**
**Host:** Polestar, on the other hand, is targeting the premium segment with its Scandinavian design focus. [Guest 1], how do you think this strategy will resonate with Korean luxury car buyers?
* **Open-ended question:** Do you see Polestar cannibalizing sales from existing European luxury brands, or will it carve out a niche of its own?
**Guest 1:**
**Host:** [Guest 2], from a business perspective, what are the advantages and disadvantages of Polestar’s partnership with Geely Auto?
* **Open-ended question:** Could this partnership pose any political challenges for Polestar in navigating the Korean market?
**Guest 2:**
**Section 4: The Future of the Korean EV Market**
**Host:** let’s look ahead. How do you predict the entry of BYD and Polestar will shape the future of the Korean EV market? [Guest 1], will Korean manufacturers need to adapt their strategies to respond to this new competitive landscape?
* **Open-ended question:** What impact might this increased competition have on EV prices and consumer choices in Korea?
**Guest 1:**
**Host:** [Guest 2], what broader implications does this trend have for the global automotive industry?
* **Open-ended question:** How do you see the balance of power shifting between established automotive players and emerging Chinese manufacturers in the coming years?
**Guest 2:**
**Host:** Thank you both for sharing your insights on this important topic. This clearly signifies a turning point for the Korean electric vehicle market. The impact of BYD and Polestar’s entry will be fascinating to watch in the years to come.
![[날씨] Rain and wind all over the country… In the afternoon, cold air comes down and snow falls in the inland and mountainous areas.](https://img2.yna.co.kr/photo/yna/YH/2024/02/05/PYH2024020513650001300_P4.jpg "[날씨] Rain and wind all over the country… In the afternoon, cold air comes down and snow falls in the inland and mountainous areas.")
