BYD 'faces uphill battle in Korea'

Staff reporter

Chinese electric car giant BYD (1211) will find it hard to break into South Korea's market amid an economic slowdown in the country, an association said.

The Korea Automobile Manufacturers Association expects BYD to struggle initially in the market like it did in Japan, the Yonhap News Agency reported.

It said that South Korea and Japan share similar market conditions, including the dominance of local brands, a relatively low market share for electric vehicles and negative perceptions of Chinese brands.

However, BYD has the opportunity to target niche markets such as rentals, corporate clients and young consumers," the report said.

BYD has sold only 3,188 cars since entering the Japanese market in July 2022. Although sales in the first three quarters of this year rose by 96 percent year-on-year, the total of 1,742 cars is far short of its target of 30,000 cars by 2025, according to the report.

Meanwhile, Alibaba (9988) has invested 100 billion won (HK$555 million) for a 5 percent stake in South Korean fashion platform Ably. Subsequently, Ably's valuation climbed to 3 trillion won, securing its spot on the unicorn list.

China is said to have overtaken South Korea in seven out of eight industries, including semiconductors, shipbuilding, and steel, leaving petrochemicals as the only sector where South Korea retains a slight 1-percentage-point lead.

The Bank of Korea recently projected Korea's economic growth at 1.9 percent next year and 1.8 percent in 2026.