[THE INVESTOR] The world’s two leading electric vehicle makers, Tesla Motors and BYD Auto Co, are set to hit the Korean market which has so far this year witnessed a sluggish growth in pure electric cars.
According to the Korea Automobile Manufacturers Association and the Korea Automobile Importers and Distributors Association on Nov. 27, a total of 53,631 new energy vehicles, including plug-in hybrid electric vehicle, battery electric vehicles and fuel cell electric vehicles, were sold in the first 10 months of the year in Korea, an increase of 63.8 percent year-on-year.
World's largest EV maker BYD's vehicle lineup |
Most of this growth, however, has been driven by hybrid cars, which occupy 94.2 percent of the total new energy car market.
Despite government subsidies, only 2,896 battery-powered electric cars or 0.15 percent of the total cars sold in Korea, were sold during the cited period.
This sluggish performance might change with the entry of the world’s top two EV makers, who are taking different tracks for market entry.
BYD for EV buses
BYD, the world’s largest EV maker, officially registered for its branch in Jeju Self-governing Province, the EV hub in Korea, according to the Shenzhen-based company on Nov. 24.
“At this early stage, our focus in Korea will be electric buses as we focus on public transportation for overseas markets,” a BYD official told The Korea Herald on the condition of anonymity. “But we cannot rule out the possibility of introducing other vehicles.”
BYD’s electric bus to be introduced in South Korea is the K9. Two local suppliers -- Ezwelfare Co and Suncore -- have already signed contracts with the Chinese company as regional distributors for the K9.
BYD’s debut comes as South Korea’s EV initiatives are not being met by local supply. Jeju Governor Won Hui-ryong last year said the city wanted to increase the supply of electric buses, but it was very difficult to meet the demand by purchasing only Korean brands.
The Jeju municipal government plans to adopt a total of 110 electric buses by the end of 2017 and build 22,400 units of chargers around the island in 2017 as part of a plan to make a carbon free city by 2030.