Korean consumers drawn by the Chinese EV giant’s competitive pricing
China’s electric vehicle powerhouse BYD has landed in South Korea and is going all out to lure local consumers who are largely loyal to the country’s homegrown brands -- Hyundai Motor Company and Kia -- with cars starting as low as 31.5 million won ($22,000).
The EV giant’s Korean launches -- the Atto 3 compact SUV, Seal sedan and Sealion mid-sized SUV -- are building hype among drivers with price tags cheaper than Korean automakers' electric fleets in the same segment. The Atto 3 is leading the charge, with preorders having begun on Jan. 16, while the Seal and Sealion are slated for release in the second half of this year.
Though it remains to be seen whether BYD can establish an impressive foothold in a market that has historically questioned Chinese-made products, local consumers are stirred up by the budget-friendly offerings.
Hype on online communities
According to BYD Korea on Friday, the Atto 3 secured 1,000 preorders over the last nine days, 99 percent of which opted for the premium Atto 3 Plus trim. During purchase consultations, consumers expressed a preference for the high-end convenience amenities, driving safety assistance features, and the battery’s safety.
On the same day, 47 online communities with combined members of over 510,000 emerged in Naver -- one of Korea’s largest search engines. Most of these forums, previously dedicated to other car brands, have shifted focus to BYD.
Car enthusiasts enthused over purchasing battery-powered cars that were 10 million won cheaper than Hyundai’s Kona EV and Kia’s Niro EV and EV3. On Jan. 20, a Seoulite posted in the largest BYD community on Naver -- which has approximately 100,000 members -- about anticipation for the release of the BYD Dolphin hatchback in Korea, highlighting it as an even more affordable option than the Atto 3 for a second car. Several comments recommended the Atto 3, with some users indicating they had preordered or considered buying the SUV.
On Blind, an anonymous online forum for verified employees, a post praising BYD cars hit over 12,000 views. On Jan. 17, the author wrote, “I have cheered Hyundai and Kia and have driven their cars for a long time, but their domestic monopoly has been inconvenient for consumers. While they continue to raise prices, the quality remains the same. Regardless of whether I purchase a BYD car or not, it’s good for consumers if rivals like BYD enter the market and spur competition among automakers.”
Criticisms linger
Not all shared the enthusiasm for the EV juggernaut’s market penetration. An LG Display staff member stated on Blind, “I will shun anyone who buys a BYD vehicle. How dare they purchase a Chinese EV, which poses a threat to our national champions, Hyundai and Kia and potentially to LG Energy Solution? How is this any different from betraying the country?”
Stirring controversy, this post largely invited cynical comments on how buying a product just because it is made in Korea shows an outdated mindset. BYD’s debut is no news, as Chinese goods have already penetrated everyday life here.
In other discussions, an employee from FST, a semiconductor materials manufacturer, cast doubt on how well Chinese cars will be received in Korea, where people are often judged by the brand and price of their cars, while acknowledging that the country makes quality EVs.
Easing anti-China sentiment
Recognizing Korea’s strong anti-China sentiment, BYD underscores its long-term approach to tap into local consumers by gradually increasing brand awareness.
An employee from KLA-Tencor Korea, a Korean unit of the California-based fab equipment maker, who visited a BYD dealership for a purchase consultation, noted that the company is aware of the hostility towards China and is planning to invest time and resources to reduce it gradually. “BYD’s budget-friendly offerings target young Koreans who have tight budgets. The idea is that as they become more familiar with BYD, any anti-China sentiment will eventually fade over time,” stated the KLA-Tencor staff.
At BYD’s media event on Jan. 16, the Chinese EV giant also emphasized its focus on young, entry-level buyers with its low-cost models like the Atto 3, who are expected to have little prejudice against Chinese made vehicles.
hyejin2@heraldcorp.com
