"Not Just Chinese Tesla: Intensified Chinese Electric Vehicle Influx into the Korean Peninsula (Comprehensive)"

Attack of Chinese Electric Vehicles
Domestic Imports of Chinese EVs Reach $42 Million by April
645% Increase in One Year... Third After US and Germany
Second in Quantity After US
Inflow of Tesla, Polestar Produced in Chinese Factories
Increase in Local Commercial Vehicles Like Buses and Trucks
Korea's Exports to China Zero This Year

Tesla factory in Shanghai, China

[Asia Economy Reporter Choi Dae-yeol] It has been revealed that electric vehicles imported from China have surged this year. While the volume of American and European brands produced in Chinese factories has increased, the industry explains that a significant number of local Chinese brand models such as trucks and buses are also being imported into the domestic market. Analysts suggest that China is actively penetrating the Korean market through electric vehicles in which it has secured considerable global competitiveness.

According to statistics from the Korea International Trade Association on the 20th, the import value of electric vehicles from January to April was recorded at $337 million. The countries from which imports were made were the United States and Germany, each with $132 million, taking first and second place by a narrow margin. China followed with $42 million. What stands out is China's growth rate. Since electric vehicle imports began in earnest in 2017, the United States, which had been the largest importer, saw a 19% decrease compared to the same period last year, while China surged by 645%. Germany's increase was slightly more than double during the same period.

The increase in Chinese electric vehicles is attributed to the inflow of vehicles produced at the Chinese factories of Tesla and Polestar, which have high domestic demand. Tesla produces high-demand models such as the Model 3 and Model Y not only at its headquarters in the United States but also in Shanghai, exporting them to neighboring countries. Initially, the Shanghai Gigafactory's production was exported to Europe, Australia, and New Zealand, but it is now known to have expanded to Korea as well.

Tesla vehicle charging at an electric vehicle charging station in Beijing, China

The electric vehicle brand Polestar is also selling the Polestar 2 produced at its Chinese factory in Korea. According to Kaizyu Data, which compiles vehicle registration status, from January to April, 2,703 Teslas and 729 Polestars were newly registered domestically.

In particular, in the commercial vehicle market such as buses and trucks, imports of local Chinese brands have significantly increased. Dongfeng Sokon's electric truck Masada saw 346 new registrations in just the past month, recording the highest number among imported commercial vehicle brands. The Chinese brand CHTC's electric bus Epic City also sold 48 units, ranking fifth among commercial vehicle models.

An official from the finished car industry said, "In the past, most internal combustion engine vehicles produced in China were sold locally, but electric vehicles are different," adding, "Since the technological barriers are relatively low, new companies have actively developed and produced them, and with massive subsidies and other policy support, export volumes to neighboring countries are increasing."

Nio's EP9, a local electric vehicle manufacturer, displayed at a store in Beijing, China

China's Internal Combustion Engine Technology Gap Remains Unclosed
"Electric Vehicles Are Different," Confidence Grows
Exports to Neighboring Countries Including Korea Increase

While global trade in exports and imports has slowed due to vehicle semiconductor supply issues in major automobile-producing countries worldwide, the situation is different for electric vehicles. In Korea, overall automobile exports increased by 1% compared to the same period last year, and imports decreased by 1%, showing little difference. This is because finished car production has been delayed due to a lack of parts.

Due to COVID-19, major Chinese cities were locked down or factories were halted, affecting many factories in Korea and Japan. European makers have faced parts supply difficulties due to factory shutdowns or logistics disruptions caused by Russia's invasion of Ukraine.

Despite these adverse conditions, electric vehicle production and sales are on the rise. This is based on the judgment that securing early leadership is crucial to dominating the future market. Korea's electric vehicle exports increased by 68%, and imports rose by more than 40%.

According to trade association statistics, China ranks third in terms of import value of electric vehicles in Korea, following the United States and Germany, and second in terms of quantity (units). China has risen to a level close to the United States, which has maintained the top spot in imported electric vehicles by a wide margin over the past four to five years. From January to April, 2,781 electric vehicles were imported from the United States, and 2,753 from China. Notably, in the past month alone, China imported 931 units, about twice as many as second-place Germany.

Finished vehicles are waiting in the storage yard next to the export shipment dock at Hyundai Motor Company's Ulsan plant.

Tesla and Polestar's Overseas Brand Growth
Local Automakers and Startups Accelerate Electric Vehicle Development
Local Brands Lead in Commercial Vehicle Market Sales

Although production is in China, most of the passenger electric vehicles from American company Tesla and European-based Polestar are non-Chinese brands. Imports of electric vehicles, mainly commercial vehicles made by local Chinese companies, have also increased significantly. Dongfeng Sokon's small electric truck was newly registered 346 times last month alone, immediately ranking second in cumulative sales among imported commercial vehicle models. On the other hand, until last year, Korea exported only a very small number of electric vehicles to China, but this year, there have been no exports to China.

Since the early 2000s, China has emerged as the world's largest market through complete vehicle production and sales. Backed by this massive market, it attracted production plants through joint ventures with leading foreign brands. Foreign companies also needed to establish local production systems to expand their business in China, and the Chinese government and companies saw opportunities to learn technology and production capabilities from overseas automakers, aligning mutual interests.

One of the "Chinese Teslas," Li Xiang's electric SUV

Nevertheless, it was not easy for Chinese automakers to catch up in a short time with the development and manufacturing know-how centered on internal combustion engines. This is why China has not exported many internal combustion engine vehicles so far.

The situation is different for electric vehicles. The driving technology centered on motors is relatively simpler compared to engines, and battery technology, considered a core component of electric vehicles, has been developed early on. Chinese companies regarded as the "second Tesla"?Xiaopeng, Li Auto, and Nio?are known to have considerable competitiveness not only in electric vehicles but also in software such as autonomous driving.

CATL, which has grown in size as domestic electric vehicle production and sales increased, has become the world's largest battery company. Based on its experience supplying domestic companies, CATL is expanding its supply to many overseas brands including Hyundai Motor, Kia, Tesla, BMW, and Volkswagen.

This content was produced with the assistance of AI translation services.