South Korea must prepare for China’s EV rise

In China, where ride-hailing services are a routine part of daily life, calling a car often means stepping into an electric vehicle. During two years in Beijing, I rode in a wide range of Chinese-made EVs and watched their rapid evolution firsthand. Their designs, digital interfaces and suspension systems seemed to improve almost overnight.

Friends visiting Beijing from South Korea for work or travel are often struck by the sheer number and variety of EVs filling the streets. Some even considered buying Chinese electric vehicles locally and shipping them home, only to abandon the idea after factoring in taxes and transportation costs.

This month’s Beijing Auto Show offered another showcase of China’s rise as an electric vehicle powerhouse. Chinese automakers no longer focused simply on affordability, instead putting technological sophistication at the forefront.

BYD, the world’s largest EV maker by market share, unveiled an electric supercar under its premium Denza brand capable of accelerating from zero to 100 kilometers per hour in under two seconds. CATL also introduced an ultrafast-charging battery that can fully recharge in just six minutes.

China’s EV industry has expanded rapidly with strong government backing, including generous subsidies and large-scale investment in charging infrastructure. Fierce competition among manufacturers has also fueled innovation.

The number of Chinese EV makers, which approached 500 in 2019, had fallen to roughly 100 by last year. While the consolidation triggered concerns over destructive price wars, it also accelerated advances in battery technology, autonomous driving systems and vehicle interiors. Chinese automakers are now pushing more aggressively into overseas markets.

A diplomatic source who has closely followed China’s technological rise for nearly a decade said companies that survived the industry’s intense competition emerged with formidable technological capabilities. “Competition with Chinese firms on the global stage will only become more intense,” the source said. The shift is already becoming visible in South Korea. Since entering the South Korean market in April last year, BYD has surpassed 10,000 cumulative vehicle sales within 11 months.

When Chinese automakers first arrived in South Korea, many consumers dismissed them outright, saying they would never trust Chinese-made vehicles. Yet one out of every three newly registered EVs in South Korea last year was manufactured in China, highlighting the steady gains Chinese brands are making.

Industry observers now expect Chinese EVs to become increasingly common in South Korea’s taxi and rental car sectors, where electric vehicles are rapidly gaining market share. At the same time, concerns are growing that South Korea’s market may be too accessible to Chinese EV makers. The United States imposes tariffs of 102.5 percent on Chinese EVs, while the European Union levies duties of up to 45 percent. South Korea’s tariff rate, by contrast, stands at just 8 percent.

Some analysts believe Chinese automakers could use South Korea’s relatively open market to pursue even more aggressive expansion strategies. Others warn that Chinese companies may quickly extend their influence beyond EVs into future strategic industries such as humanoid robotics.

China’s expanding presence in the South Korean market reflects not only the growing competitiveness of its companies, but also the comparatively low barriers they face. That reality is likely to intensify calls for policymakers and industry leaders to strengthen domestic industrial competitiveness and prepare for fiercer global competition. Protecting and fostering key national industries is not simply a matter of economic nationalism or supporting individual companies. It is an issue with far-reaching implications for South Korea’s broader economic and industrial future.