![Zeekr 7X (top left, clockwise), Tesla Model Y, Polestar 4, and BYD Dolphin. [Zeekr, Tesla website, Herald DB]](https://wimg.heraldcorp.com/news/cms/2026/08/04/news-p.v1.20260804.9064c8d543be462191d1feadc7640632_P1.jpg)
Electric vehicles made in China — including models from Tesla and BYD — are rapidly expanding their foothold in the South Korean market.
According to a report on first-half domestic vehicle registration trends released Tuesday by the Korea Automobile Manufacturers Association (KAMA), a total of 850,636 new vehicles were registered in South Korea in the first half of the year, up 1.3% from the same period last year.
Chinese brands posted particularly strong growth. Imported vehicle registrations jumped 30.0% year-on-year in the first half, giving imports a 22.7% share of the domestic market. The surge was driven by an influx of China-made Tesla models alongside electric vehicles from Chinese brands such as BYD and Polestar, propelling China to the top spot among import source countries with a 41.2% share of all imported vehicles. German brands, which had long held a majority of the import market, saw their share fall to 42.2%.
KAMA acknowledged that the rapid influx of Chinese-made EVs brings benefits — lower prices and greater consumer choice — but warned it is also squeezing the domestic manufacturing base and intensifying supply chain competition, making it necessary to secure price competitiveness for locally made vehicles and put ecosystem protection measures in place.
KAMA Chairman Jeong Dae-jin said the domestic auto industry's manufacturing base and supply chain competitiveness face a serious threat as the wave of Chinese EV competition accelerates in both global and domestic markets. "To overcome this transitional crisis, it is necessary to include electric vehicles in a domestic production incentive tax scheme that can strengthen the competitiveness of the entire domestic production infrastructure and ecosystem," he said.
Jeong added that slowing demand from the depletion of local government subsidies is also a concern, urging municipal governments to move quickly to secure supplementary budget allocations and announce second-half subsidy programs. He also called for continued tax benefits — including individual consumption tax reductions — for eco-friendly vehicles including hybrids, to sustain momentum through the shift toward electrification.
By powertrain type, electric-drive vehicles — comprising hybrids, battery EVs and hydrogen fuel-cell vehicles — accounted for 57.8% of all registrations in the first half.
Battery EVs surged 113.6% year-on-year to 198,509 units, capturing a 23.3% market share, driven by the expansion of affordable EV models and a growing influx of imported EVs from Tesla and BYD. Hybrid vehicles sold 289,814 units — a 34.1% share — despite parts supply disruptions.
KAMA cited three factors behind the sharp EV growth: the introduction of a new "EV transition support payment," the early execution of local government subsidies, and high fuel prices.
Meanwhile, the share of pure internal combustion engine vehicles fell 11.7 percentage points to 42%, down from 53.7% in the same period last year. Diesel vehicles in particular plunged 59.5% year-on-year, hit by the discontinuation of passenger trims and supply restrictions on some models.
likehyo85@heraldcorp.com
