Hyundai Motor Faces Challenge On Its Home Turf! Sounds Alarm Over BYD's Entry Into South Korean Market

Hyundai Motor has raised concerns about the potential impact of BYD, China’s largest electric vehicle (EV) manufacturer, as it plans to enter South Korea’s passenger car market. Despite the current negative perception of Chinese brands, Hyundai Motor recognises BYD’s competitive strengths, making it a formidable player in the local market. This warning came from Yang Jin-soo, head of the Mobility Industry Research Division at Hyundai Motor Group’s Business Research Center, during a recent seminar with automotive reporters.

Hyundai Motor Raises Alarm Over BYD's Entry into South Korea

BYD, which recently established a South Korean sales subsidiary, is set to launch passenger vehicles in South Korea by the first quarter of 2025. Hyundai Motor acknowledges that while South Korean consumers may initially have reservations about Chinese brands, BYD’s ability to engage with local customers effectively could shift public opinion. Hyundai Motor has cautioned that dismissing BYD’s potential in South Korea would be a mistake. The entry of BYD into the market could alter the competitive landscape significantly.

Hyundai Motor’s Forecast on the Global EV Market

Hyundai Motor also shared insights into the global electric vehicle market’s future growth. According to Hyundai Motor’s forecast, the EV sector is expected to grow steadily, with plug-in hybrid electric vehicles (PHEVs) showing stronger growth than battery electric vehicles (BEVs). Hyundai Motor projects that BEV sales will increase by 18.9% this year, while PHEV sales are expected to rise by 23.8%, compensating for the growth slowdown in BEV sales.

In China, Hyundai Motor anticipates that BEV sales will grow by 13.1% to 6.97 million units, while PHEV sales are projected to increase by 25.1%, reaching 6.4 million units. In the United States, Hyundai Motor expects BEV sales to rise by 18.3% to 1.94 million units.

Hyundai Motor’s Global EV Market Growth Projections

Looking forward, Hyundai Motor predicts the global EV market, including both BEVs and PHEVs, will expand from 17.2 million units in 2024 to 20.7 million units in 2025. Overall, Hyundai Motor expects global automotive sales to grow by 1.9% in 2025, totaling 85.9 million units. Hyundai Motor believes that interest rate cuts in major markets, particularly in the second half of 2025, will improve purchasing conditions and further boost sales.

As Hyundai Motor continues to monitor the rise of BYD and other competitors, the company remains focused on maintaining its position in the rapidly evolving automotive market. This strategic outlook from Hyundai Motor emphasises the importance of staying ahead of the competition, especially as new players like BYD enter established markets like South Korea.