China’s BYD, the world’s top-selling electric vehicle (EV) maker, including plug-in hybrids, is set to enter South Korea with its Atto 3 compact SUV, aiming to challenge established players in a market known for strong brand loyalty.
Leveraging its cost competitiveness and a robust domestic market base, the company has expanded into more than 100 countries and ramped up overseas production. It is expected to officially launch the Atto 3 in South Korea this month, pricing it around 30 million won ($22,400) as part of its broader global push.
However, BYD faces hurdles in South Korea, where skepticism toward Chinese-made cars persists, particularly regarding safety and quality. Government subsidies for the Atto 3, finalized only on April 2, delayed its initial launch from mid-February. There is also speculation that the company may prioritize fleet sales to taxi operators and rental firms before focusing on individual consumers.
Cho In-chul, managing director of BYD Korea’s passenger car business, dismissed such speculation, emphasizing the company’s commitment to building trust with general consumers. “There is still bias against ‘Made in China’ products, but we aim to establish ourselves as a brand that offers a premium driving experience,” Cho said in an interview with The Chosun Ilbo on April 1. “We are not considering partnerships with taxi or rental car companies at this stage. Instead, we want consumers to recognize our products on their own merits.”
The company’s entry into South Korea is part of a wider push by Chinese automakers into overseas markets. In 2024, BYD sold approximately 410,000 vehicles outside China, a 72% increase from the previous year. It is expanding its global footprint with new factories in Europe and other regions.
“To be recognized as a true global player, BYD believes it must establish a presence in key automotive markets,” Cho said. “South Korea may be smaller than China’s domestic market, but it is home to globally recognized automakers alongside Japan and Germany, making it a significant test ground for Chinese brands.”
The company sees high EV prices as a key factor slowing adoption and is positioning itself as a provider of affordable EVs to increase consumer accessibility. “Even I had biases against Chinese products before joining BYD,” Cho said. “We don’t expect to change perceptions overnight, but we plan to start with budget-friendly EVs and gradually move upmarket.”
Following the Atto 3, BYD plans to introduce the Seal, a mid-size sedan, and the Sealion 7, a mid-size SUV, later this year. Both models are priced around 40 million won ($29,800) in China, though South Korean pricing has yet to be determined.
In its first year in South Korea, the company is focusing on laying the groundwork rather than setting sales targets. “As the first Chinese passenger car brand in this market, we faced many uncertainties, from regulatory approvals to consumer reception. That’s why we have not set a sales goal for 2025,” Cho said. “We will assess market response this year and establish targets as early as 2026.”
To build its presence, BYD is expanding its dealership and service network. “We currently have 15 showrooms and 12 service centers nationwide, and we aim to increase those to 30 and 25, respectively, by year-end,” Cho said. The company is also preparing to launch a certified used car program as early as late 2025. “Ensuring a resale market for our vehicles is crucial for creating a sustainable sales cycle,” he added.
Acknowledging the challenge of overcoming negative perceptions of Chinese-made cars, Cho said the company is taking a long-term approach. “We know that people still rank Chinese brands below U.S. and European counterparts. It will take time, but even if it takes 20 years, our goal is to become a brand associated with a premium driving experience,” he said.
