Commercial vehicles lead Chinese automakers' Korean invasion

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Commercial vehicles lead Chinese automakers' Korean invasion

GS Global showcases BYD's electric truck T4K at an event hall in central Seoul in April. [YONHAP]

GS Global showcases BYD's electric truck T4K at an event hall in central Seoul in April. [YONHAP]

 
Slowly but surely, China is expanding its presence in the Korean auto market with its competitively priced commercial electric vehicles.
 
One third of new commercial vehicles registered in Korea in the first half of the year were Chinese brands, according to data from market tracker CarIsYou on Wednesday. Commercial vehicles are cars designed for commercial use like trucks, buses and vans. 
 
A total of 4,563 commercial vehicles were registered in Korea between January and June. Of them, 1,451 were from Chinese makers.
 
Shenyang-based Brilliance Auto's ET Van was the most popular imported commercial vehicle in Korea in the first half, with a total of 582 units sold. The van was introduced in Korea last year.
 
Masada Van, a van by Dongfeng Sokon Automobile, was No. 2 with 3,53 units sold.
 
In the electric bus sector, Chinese brands accounted for 43 percent of Korea's market in the first half. That's a dramatic surge from 33 percent in 2020 and 38 percent in 2021.
 
The figure is likely to rise still further in the second half since BYD rolled out its 1-ton electric truck, the T4K, in April. It is the first-ever BYD vehicle available in Korea. A total of 24 T4Ks were sold in the last two months.
 
The T4K is around 1 million won ($790) more expensive than Hyundai Motor's Porter and Kia's Bongo truck, but can travel 247 kilometers (153 miles) per single charge, or around 17 percent further.  
 
Zhejiang Geely Holding also began selling its 1-ton SEA2 electric van in Korea this month. Mobility Networks is the official local importer.
 
No Chinese passenger vehicles were sold in Korea during the same period.
 
However, experts warn that even Chinese passenger vehicles could eventually threaten Korean automakers like Hyundai Motor and Kia.
 
BYD, the largest automaker in China, opened its Korean office in Yongsan, central Seoul, earlier this year.  
 
Six BYD electric models, including the Seal sedan, Dolphin hatchback and Atto SUV, have been trademarked in Korea. Imports await approval from the Environment Ministry.
 
"By making a presence in Korea, the real intention of the Chinese brands is to refurbish their image, ridding themselves of their reputation as cheap but low-quality," said Kim Pil-soo, an automotive engineering professor at Daelim University.
 
"China's position in the global auto market is on the rise thanks to its price competitiveness, so Korean companies must be ready as Chinese manufacturers are continuously eyeing an entry to Korea."
 
The sticker price of the Seal starts from 220,000 yuan ($30,500) in China, around $10,000 cheaper than Hyundai Motor's similarly sized Ioniq 6.
 
BYD vehicles may debut in Korea within the year.
 

BY SARAH CHEA [chea.sarah@joongang.co.kr]
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