We Know Koreans Are Wary of Chinese Brands... So Why Are Chinese EV Makers Lining Up to Enter Korea? [China's Onslaught]

'Xpeng,' often referred to as the Tesla of China, has recently established a Korean subsidiary and begun targeting the domestic electric vehicle market. With Xpeng joining BYD and Zeekr, the Korean market is emerging as a key stage for Chinese electric vehicle companies to test their global strategies.

Xiaopeng's sedan and SUV. Photo by Reuters and Yonhap News

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According to industry sources on September 25, Xpeng established its Korean subsidiary, 'Xpeng Motors Korea,' in June. The company is currently searching for a suitable candidate to serve as the head of its passenger vehicle division. Similarly, Zeekr, an electric vehicle brand under Geely Automobile Group, established its Korean subsidiary in February and appointed a Korean CEO, officially announcing its entry into the domestic market.

The successive entries of these Chinese electric vehicle companies into Korea are seen as moves influenced by the success of BYD, which has already established a foothold in the market. Since launching its passenger car division in January this year, BYD recorded sales of 1,974 units by August, nearly reaching 2,000 units. Among the 15 brands selling imported electric vehicles in Korea, BYD ranked sixth, surpassing major brands such as Mercedes-Benz, Polestar, Volvo, and Mini, thereby increasing its presence. Although its market share in the overall imported car market remains modest at just about 1%, its performance is considered significant given its focus on electric vehicles and its status as a new brand.

Xpeng's electric SUV G6 launched in Europe. Photo by Xpeng

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The reason Chinese companies are successively entering the Korean market is due to its symbolic value as a 'testbed.' Korea not only has one of the fastest rates of electric vehicle adoption in the world, but also boasts highly demanding consumers. Achieving success in such a challenging market is seen as direct proof of a brand's competitiveness on the global stage. In particular, if these companies can overcome the somewhat conservative perceptions of Korean consumers toward Chinese products, it would be interpreted as recognition of both their quality and brand competitiveness.

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Therefore, simply offering competitive prices is not enough to gain a foothold in the Korean market. An industry insider emphasized, "Domestic consumers are just as sensitive to safety, technology, and brand image as they are to cost-effectiveness," adding, "For Chinese companies to succeed, they must not only provide strong products, but also implement thorough local marketing strategies."

The XiaoPeng booth at the IAA 2025 held in Germany until September 20. Provided by XiaoPeng

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Domestic automakers are also on high alert. There are concerns that if the transition to electrification and software-defined vehicles (SDVs) is delayed, Chinese brands may exploit the gap and take some market share. In response, the Korean industry is accelerating the shift to SDVs, developing next-generation electric vehicle platforms, strengthening experiential marketing, and enhancing premium and eco-friendly brand images as core strategies.

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