'Made in China' Tesla EVs conquer Korean roads

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'Made in China' Tesla EVs conquer Korean roads

Published: 08 Apr. 2024, 16:45 Updated: 10 Apr. 2024, 13:53

SARAH CHEA
chea.sarah@joongang.co.kr

Model Ys are manufactured at Tesla's factory in Shanghai. [XINHUA/YONHAP]

Shanghai-made Tesla EVs are dominating Korean roads, with Model Y becoming the best-selling EV in the domestic market last month.

A total of 6,025 Tesla EVs were newly registered in Korea in March, up 378.9 percent on year, according to data from Korea Automobile Importers & Distributors Association (KAIDA).

That beat all other auto brands available in Korea, even local brands such as Hyundai, which only sold 3,343 EVs, down by 36.1 percent. Kia’s EV sales slid 23.9 percent to 3,198 units in March.

In terms of models, Tesla’s Shanghai-based Model Y was the best-selling model with a total of 5,934 units registered, up 484.1 percent on year. The SUV, equipped with cheaper lithium iron phosphate (LFP) batteries made in China, was released with a 20-million-won ($14,800) cheaper price tag than its predecessor in Korea last year.

During the same period, Hyundai sold 1,968 Ioniq 5s and only 897 Ioniq 6s. In March, Kia only sold 128 EV9s.

Between Jan. to the end of March, a total of 6,012 Model Ys were registered compared to 2,152 Ioniq 5s and 957 Ioniq 6s.

The sales were made despite the government slashing EV tax credits for EVs powered by China-made batteries by up to 40 percent. Model Y, which used to be qualified for up to 5.14 million won ($3,800) in tax credit, only qualifies for 1.95 million won in subsidies this year.

Ioniq 5s and 6s are qualified for up to 6.9 million won in subsidies.

Orders normally grow starting from March since the government confirms each year's subsidy plan in March. LFP batteries cost less but have less energy density than the high-performing, nickel-cobalt-manganese (NCM) batteries used and produced in Korea. The world's LFP battery market is more than 90 percent controlled by Chinese firms like CATL and BYD.

Tesla is likely to be on the up and up for a while as it recently introduced a Model 3 Highland, its first partial revamp in five years.

The model offers an option that comes with LFP batteries and a long-range version equipped with NCM batteries.

The Model 3 is manufactured at Tesla’s factory in Shanghai.

The sticker price starts from 51.99 million won, around 2 million won cheaper than the market expectation.

“Model 3 Highland beats Ioniq 6 by a landslide in terms of design,” read one comment on an online forum where a writer asked for opinions on which of the two cars is better.

"I would definitely go with Model 3 unless the subsidy is confirmed to be shockingly low."

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