China-Made EVs Capture One-Third of South Korea's New EV Registrations in Q1 2026, Driven by Tesla Shanghai Exports

Gate News message, April 27 — China-made electric vehicles accounted for approximately one-third of new EV registrations in South Korea during the first quarter of 2026, driven primarily by Tesla models manufactured in Shanghai. According to the Korea Automobile and Mobility Association, sales of China-made EVs surged 286.1% year-on-year to 25,000 units, while Korean brands sold about 51,000 units and grew 126.1%.

Tesla cut prices on Shanghai-built models with smaller batteries and shorter range by as much as 10 million won (approximately $6,740), intensifying price competition. BYD, one of China’s largest automakers, has also expanded aggressively in the South Korean market, selling more than 10,000 vehicles in its first 15 months and ranking fourth among imported brands by March 2026. BYD’s Dolphin hatchback is priced at 24.5 million won (approximately $16,513) before subsidies, with 32 showrooms currently operating and plans to reach 35 dealerships by year-end.

The market share gains by Chinese EV makers have prompted South Korea to adjust its subsidy policy. New rules would limit subsidies to automakers demonstrating strong local partnerships, investment in South Korean research and development centers, domestic job creation, and after-sales service networks. Domestic automakers such as Kia have also cut prices in response. Unlike the U.S. and European Union, which rely on high tariffs to curb Chinese EV imports, South Korea is using more granular subsidy rules as a protective measure for its local auto industry.