According to Fast Technology on September 12, a report released by the Korea Institute for Industrial Economics and Trade (KIET) on the 10th of this month showed that Chinese electric vehicles are rapidly rising in the South Korean market, occupying a market share of 33.1%.

The report pointed out that the import of Tesla made in China into South Korea is the main reason for the share of Chinese electric vehicles in the South Korean market to rise from 14% last year to 33.1% this year.

Chinese electric vehicles have always dominated the global market, accounting for more than 68% of global production last year and in the first half of this year, respectively. In the Thai market, 84.2% of electric vehicle sales last year came from Chinese brands; in the European market, the share of Chinese electric vehicles exceeded 18% in the first half of this year.

The report of the research institute also emphasized the significant price difference between cars made in China and those produced by other countries.

The average price of electric vehicles from Chinese brands in major markets is only half that of other brands. This price competitiveness is attributed to the developed domestic parts supply chain, with more than 70% of global battery production capacity concentrated in China.

The research institute emphasized that the fundamental problem is the high price of Korean electric vehicles, which cannot be solved by subsidies alone, and also emphasized the necessity of innovation in production methods and supply chain efficiency, suggesting that a thorough analysis should be conducted first to understand the source of China's price competitiveness.

In response to the slowdown in sales of electric vehicles and batteries in South Korea and the rise of Chinese electric vehicles, the research institute believes that there is an urgent need to formulate a strategy, suggesting that differentiation should be pursued in various aspects such as autonomous driving, intelligent functions, and design, while emphasizing the need to adjust investment plans and operating plans based on market trends and new forecasts for the BEV market.