While the global electric vehicle (EV) market faces a temporary slowdown, China’s new energy vehicle (NEV) market maintains its growth momentum. As electric and hybrid vehicles continue to gain market share in China, major Chinese manufacturers are now targeting Asian markets, including South Korea, following their expansions in Europe and the U.S.
China’s BYD, the world’s largest EV maker by market share, will host an event on Jan. 16 to officially launch its passenger car brand in South Korea. The company’s first model for the market, the compact electric SUV Atto 3, completed environmental certification on Jan. 13 and is set to go on sale starting next month.
Following BYD, other Chinese EV companies, including Zeekr, Xiaomi, and XPeng, are expected to accelerate their entry into South Korea. Zeekr, a premium EV brand under Geely Group, has already registered its trademark in South Korea and plans to open showrooms as early as the second half of this year. Xiaomi and XPeng are also preparing to launch their vehicles in the country.
Chinese EV makers, which have built strong influence in their domestic market, are now shifting their focus to South Korea and other Asian markets. In China, EVs and hybrids have been a driving force for automotive market growth. According to the China Passenger Car Association (CPCA), China’s car sales rose 5.3% year-on-year to 23.1 million units in 2023, marking four consecutive years of growth. NEV sales surged 40.7% to a record 10.89 million units, accounting for nearly 47.67% of total vehicle sales and are projected to surpass 50% this year.
After establishing competitiveness in its domestic market, China is ramping up its exports. Chinese automobile exports grew 19.3% year-on-year, surpassing 5 million units for the first time last year. Exports of internal combustion engine vehicles rose 23.5% to 4.57 million units, while NEV exports increased by 6.7% to 1.28 million units.
With tariff barriers rising in Europe and the U.S., China is expected to focus more on exporting to Asian markets, including South Korea. The European Union imposed additional tariffs of up to 35% on Chinese EVs in October last year, while the U.S. raised its tariffs on Chinese EVs from 25% to 100% in September. The second Trump administration has also signaled plans to impose an additional tariff of at least 10%.
Hyundai Motor Group’s HMG Business Intelligence Institute forecasts that while the global EV market is expected to continue facing a demand slowdown this year, Chinese manufacturers will likely keep expanding their influence. Chinese companies accounted for two-thirds of global eco-friendly vehicle sales (15.59 million units) in 2024. Leading firms such as BYD (ranked first), Geely (third), and Changan (sixth) saw significant market share growth, while Tesla, Volkswagen, and Hyundai-Kia experienced declines.
