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Tesla faces after-sales criticism after hitting record sales in Korea
Tesla is on pace to hit a record for annual EV sales in South Korea in 2024, but faces criticism over after-sales service and lack of local contributions.
The US-based automaker sold 47,962 vehicles between January and October, up 92.8% year-on-year, according to the Korea Automobile Importers and Distributors Association.
Tesla operates 14 service centers in Korea, far fewer than BMW’s 81 and Mercedes-Benz’s 74, with most located in Seoul and Gyeonggi Province.
This limited coverage has led to long wait times for battery management system (BMS) repairs, with 4,637 BMS repair cases reported from August 2020 to September 2024 and an average repair duration of 23.4 days.
Tesla Korea announced last month it will extend free battery repairs for certain vehicles and increase customer support staff.
Regulatory filings show Tesla Korea reported revenue of 1.7 trillion won (US$1.2 billion) and operating profit of 25.9 billion won in 2023, but has made no donations in Korea since 2019.
🔗 Source: The Korea Herald
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Implications, context, and why it matters.
Korea lifts EV subsidies while Tesla risks a suspension over battery failures
- South Korea will lift the EV subsidy budget to 936 billion won in 2026, up about 20% from this year, while scrapping consumption and acquisition (vehicle purchase/registration) taxes for all‑electric, hybrid petrol‑electric and hydrogen vehicles 12. The Environment Ministry warned Tesla to fix widespread battery problems or lose subsidy eligibility 3.
- About 4,500 Teslas suffer a Battery Management System (BMS) ‘a079’ error that caps charge at 50%, which halves usable range 3. It hits 22% of 2021 Model Ys and 12% of 2021 Model 3s 3. Owners say it returned after pack swaps, with some alleging Tesla used refurbished battery packs (restored, previously used units) 3.
- EV subsidies reach up to 5.8 million won (~$3,950) per vehicle 3. Losing eligibility over quality issues could sap Tesla’s 2024 sales in 2026 when the enhanced program starts.
Repair delays create room for insurers and rental platforms to bundle downtime coverage
- Tesla repairs for BMS faults take an average of 23.4 days 4. EV claims average 13 million won versus 6.9 million for conventional cars after fire incidents 4.
- Samsung Fire & Marine, KB Insurance, and Hyundai Marine & Fire Insurance are reviewing EV policies 4. Downtime insurance fits the gap (guarantees a replacement vehicle when repairs exceed a set number of days).
- LOTTE rent-a-car, a large domestic rental provider, runs a network at airports and train stations, which lets platforms partner with insurers on guaranteed replacement car programs 5.
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