Tesla drives surge in China-made EVs in South Korea

China-made EVs accounted for about one in three new EV registrations in South Korea in the first quarter of 2026, driven mainly by Tesla models shipped from Shanghai.

The Korea Automobile and Mobility Association said sales of China-made EVs rose 286.1% year on year to 25,000 units, while Korean brands sold about 51,000 units and grew 126.1%.

The group’s data also showed the share of China-made EVs rose to 33.9% in 2025 from 4.7% in 2022, while Korean-made EVs fell to 57.2% from 75%.

Tesla has cut prices in South Korea by as much as 10 million won or US$6,740 for Shanghai-built models with smaller batteries and shorter range.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Beyond Tesla, Chinese brands are pushing into Korea

Tesla’s Shanghai exports matter, though Chinese automakers like BYD, one of China’s largest EV makers, are expanding fast as well 1.
BYD sold more than 10,000 vehicles in its first 15 months in Korea. By March 2026, it ranked fourth among imported brands 1.
Its edge starts with price. The Dolphin hatchback costs 24.5 million won (US$16,513) before subsidies. BYD also runs 32 showrooms across the country and plans to reach 35 dealerships by year end 1.
Tesla imports and BYD’s rollout together help explain the market share changes and the pressure on local carmakers 1, 2.

Korea’s subsidy changes raise the stakes in the EV fight

Those market share losses pushed South Korea toward a tougher response for foreign EV brands.
New rules would limit subsidies to automakers that score well on local partnerships, investment in South Korean research and development centers, domestic jobs, and after-sales service networks. That creates a higher hurdle for some importers 3.
At the same time, domestic automakers such as Kia have cut prices. Together, those moves could deepen price competition and make the market harder for overseas brands 2.
The US and European Union (EU) rely on high tariffs to curb Chinese EV imports. Korea is taking another route through more detailed subsidy rules, which may offer a model for countries trying to shield local auto industries 3, 4.