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BYD's Atto 3 sales face further delay over hurdles to subsidy eligibility

Published: 12 Mar. 2025, 10:30

CHO YONG-JUN
[email protected]

The BYD Atto 3 is shown during the automaker's press event on Jan. 16. [YONHAP]

BYD's hopes of taking off in the Korean market with sales of its Atto 3 face even more delays as the Chinese automaker-and-battery giant continues to deal with multiple certification hurdles.

“BYD Korea finds it regrettable that customers are experiencing inconveniences, and is worried as the delivery of [the Atto 3] is being delayed,” BYD Korea said in a notice uploaded to the company’s website on Thursday. The automaker also introduced plans to offer charging credit worth 300,000 won ($205) to customers who have made down payments on purchases.

The Chinese giant introduced its compact electric crossover to the Korean market on Jan. 16, with plans to deliver the vehicles to customers in mid-February.

The Atto 3 was advertised with a competitive price of 29 million won ($19,899) — when including expected subsidies. However, a continual failure to qualify has pushed deliveries back.

“The BYD Atto 3 is currently in the process of waiting to be listed as an environmentally friendly automobile and have its subsidy calculated,” the automaker said.

The delay is caused by the absence of a feature showing the state of its battery's charge, a new requirement for the EV subsidy imposed by the Ministry of Environment this year.

BYD Korea submitted a document to the ministry on Feb. 28 pledging a software update within a year, but acceptance is subject to approval by the ministry, which may entail the submission of additional documents, a source in the Environment Ministry told the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily.

The Atto 3 also has yet to receive its official energy efficiency result from the Korea Energy Agency. Medium-to-large sized EVs, which the BYD Atto 3 is classified as, are required to have an efficiency of 3.7 kilometers (2.3 miles) per kilowatt to qualify for the subsidy.

“We are yet to receive the test result from the Korea Energy Agency,” a source in the Ministry of Trade, Industry and Energy said. “Even if we receive the result, verification will take some time.”

If the BYD EV fails to be listed as an environmentally friendly vehicle at the end of March, deliveries will have to be delayed by another month as the list is revealed at the end of every month — one reason some industry insiders speculate that deliveries will commence no earlier than May.

The Personal Information Protection Commission (PIPC) also decided Friday to inquire about privacy concerns surrounding the BYD. The car's perpetual connectivity to the internet has sparked worries that driving data or personal information will be uploaded online.

“BYD Korea is already in the process of improving its privacy policy and manuals, and will faithfully reflect Korea’s privacy protection laws,” the company told the PIPC.

The brand, however, still poses a big threat to the Korean EV market, according to experts.

Korea Institute for Industrial Economics & Trade researcher Cho Chul said BYD is already receiving international recognition, as proven by an increase in global shipments.

“Korean consumers also have high expectations for Chinese EVs, and the local EV industry will be threatened by it in the long run,” the researcher said.

BY KIM HYO-SEONG,CHO YONG-JUN [[email protected]]