The BMW 5 Series and Mercedes-Benz E-Class, representing European brands, alongside the Tesla Model Y and BYD Dolphin Active, representing American and Chinese electric vehicles. [Herald DB]
The BMW 5 Series and Mercedes-Benz E-Class, representing European brands, alongside the Tesla Model Y and BYD Dolphin Active, representing American and Chinese electric vehicles. [Herald DB]

Imported cars have crossed the 25% threshold in South Korea's passenger vehicle market for the first time, meaning more than one in four newly registered cars is now a foreign brand. Electric vehicle brands — led by Tesla and BYD — are driving the expansion.

According to preliminary data from the Korea Automobile Importers and Distributors Association and the Korea Automobile Mobility Industry Association, imported cars accounted for 29,860 of the 115,680 new passenger vehicles registered in May, a share of 25.8%. It was the first time the monthly import share had exceeded 25%.

The trend continued in June. Newly registered imported passenger cars totaled 38,059 units, up 37.0 percent from the same month last year, pushing the market share slightly higher to 25.9 percent. Imports have now held above 20 percent for five consecutive months, from February through June.

Imported cars first broke the 10 percent mark in the new passenger vehicle market in 2012 and crossed 15 percent in 2015. Last year, annual new registrations surpassed 300,000 units, giving imports a 20.3 percent share. This year, buoyed by surging electric vehicle sales, the segment has climbed into the 25 percent range, marking another shift in the market landscape.

First-half import sales also hit a record high. New registrations of imported passenger cars from January through June reached 184,032 units, up 33.2 percent from 138,120 units in the same period last year — roughly 46,000 more vehicles sold in just six months.

The most striking change is Tesla's dominance. Tesla registered 56,139 units in the first half, claiming the top spot among all import brands — a 30.5 percent share of total import registrations. It marks the first time an electric vehicle brand has led a market long dominated by BMW and Mercedes-Benz.

The Model Y is the standout model. Tesla's Model Y L was the best-selling imported vehicle in June, with the Model Y Premium also ranking near the top. Starting at 49.99 million won ($33,100), the Model Y has been broadening its appeal, particularly among consumers in their 30s and 40s.

Chinese automaker BYD has also contributed to the import market's growth. BYD registered 11,675 units in the first half, jumping to fourth place among import brands and overtaking Lexus, Volvo and Audi. Its compact electric vehicles are capturing value-conscious buyers — the Dolphin starts at 24.5 million won and the Dolphin Active at 29.2 million won.

Breaking down the first-half increase makes Tesla and BYD's impact even clearer. Total import registrations rose by about 46,000 units compared with the same period last year, while the combined increase from Tesla and BYD alone came to roughly 47,000 units — meaning the two brands effectively accounted for nearly all of the market's growth.

Electric vehicles are also rapidly gaining share within the import segment. EVs made up 51.1 percent of imported car sales in June, crossing the halfway mark for the first time. First-half import EV registrations jumped 158.5 percent year-on-year to 83,790 units. Analysts say the import market, once dominated by European brands built around internal combustion engines, is being reshaped around American and Chinese electric vehicles.


kwater@heraldcorp.com