Sales of imported electric vehicles in South Korea overtook those of domestic models for the first time last month, as Chinese-built EVs kept gaining ground on price while most Korean automakers struggled with the depletion of EV subsidies. Industry officials now worry that imported EVs could capture a larger share of the market than domestic models for the full year.
A total of 18,181 imported EVs, including commercial vehicles, were sold in the domestic market in September, up 41.0% from 12,898 a year earlier, according to the Korea Automobile & Mobility Association (KAMA) on the 22nd. Domestic EV sales fell 14.5% over the same period to 13,587 units. It is the first time monthly imported EV sales have exceeded domestic sales since KAMA began compiling separate figures for domestic and imported EVs in January.
Tesla led imported EV sales, delivering 12,372 units last month, a 36.4% increase from 9,069 a year earlier. Its best sellers were the Model Y at 11,421 units and the Model 3 at 821 units, both produced at the company's plant in Shanghai, China.
BYD's gains were also striking. The Chinese automaker sold 2,614 EVs in September, more than double the 1,020 units sold a year earlier. Its top seller was the Dolphin at 1,221 units including the Active trim, followed by the Sealion 7 at 753 units.
Among Korean automakers, every company except Kia (000270.KS) posted lower EV sales. Kia sold 7,720 EVs last month, up 17.7% from 6,555 a year earlier, with the EV5 its best seller at 2,160 units. Hyundai Motor (005380.KS) sold 3,628 units, down 41.5% from September last year. KG Mobility (003620.KS) saw its EV sales drop 88.8% over the same period.
As Chinese automakers accelerate their push into the Korean market, some expect imported EVs to outsell domestic models for a full year for the first time in 2026. Of the passenger EVs newly registered in Korea from January through September, imported models totaled 132,438 units, ahead of 125,846 domestic units. Chinese-built vehicles accounted for 112,417 of the imported total, or 84.9%. "If the current trend continues, there is a strong chance imported EVs will hold more than 50% of the domestic market through the end of the year," an industry official said.
Critics also point to Korea's EV subsidy program, which draws on a limited budget yet supports domestic and imported models alike. Starting in July, the government revised the program to screen recipients based on their contribution to the local economy, including supply chains and after-sales service. BYD was excluded from the list of eligible companies as a result, but Tesla, which builds most of the models it sells in Korea in China, still receives subsidies worth hundreds of billions of won.
The shift toward imports is not limited to EVs. Domestic sales of Korean-made vehicles totaled 99,157 units in September, down 19.4% from a year earlier, while imports rose 3.9% to 36,239 units. Among Korean brands, sales fell at Hyundai Motor (-25.7%), Kia (-6.6%), GM Korea (-40.9%), KG Mobility (-48.8%) and Renault Korea (-45.3%), while Tesla (+36.4%) and BYD (+156.3%) posted sharp growth. "Major economies including the United States and the European Union are raising tariff barriers against Chinese products to protect their own industries, but in Korea that discussion is virtually absent," another industry official said.