BYD, a Chinese electric vehicle manufacturer, is securing its sales network in South Korea by signing showroom lease agreements. The company plans to open 20 showrooms across South Korea this year and expand to 70 by 2026.
According to industry sources, a Chinese company that acquired BYD’s sales rights in South Korea recently signed a lease agreement for a showroom in Gangseo-gu, Seoul. This location is currently a Jeep showroom, which will operate only until July 31. Han Sung Motor, which holds BYD’s sales rights for Gangnam and Gangdong in Seoul, will also open a BYD showroom at the Dosan-daero intersection in Gangnam-gu.
BYD’s strategy involves opening 20 showrooms this year in the metropolitan area, Busan, and Daegu. This approach contrasts with other electric vehicle companies like Tesla and Polestar, which have primarily targeted the South Korean market through online sales. An industry insider noted, “BYD believes that due to South Korean consumer preferences, a showroom-based sales strategy is more suitable. Even Tesla and Polestar have showrooms to provide consumer experiences.”
In Japan, where BYD entered the market earlier than in South Korea, the company has secured numerous showrooms by utilizing local dealers. In South Korea, BYD will collaborate with five companies including the Chinese company that recently acquired BYD’s sales rights: Han Sung Motor will manage showrooms and service centers in Gangnam and Gangdong, Seoul; Deutsch Motors will cover Bundang (Seongnam) and Suwon in Gyeonggi Province; Seyoung Mobility will be responsible for Gangbuk in Seoul and Uijeongbu in Gyeonggi Province; and Samchully Motors will oversee Mok-dong (Yangcheon) in Seoul and Incheon. These companies are highly regarded for their extensive experience in operating imported car showrooms and service centers, as well as their financial strength.
BYD’s electric vehicles are currently undergoing certification in South Korea, with models such as the Seal, Dolphin, and Atto 3 expected to be sold. The certification process began in the first half of this year, with sales targeted for the latter half.
The entry of Chinese electric vehicles, known for their competitive pricing, into the South Korean market is expected to directly challenge Hyundai and Kia. However, BYD has avoided a low-price strategy in Europe, Japan, and other markets, making its domestic pricing strategy a key consideration.
