China Cars Conquer Korea, Japan Struggles

Chinese electric vehicle manufacturers, including BYD, are expanding their presence in South Korea and Japan, countries with strong automotive industries and skeptical consumers. In South Korea, BYD has seen considerable success, selling over 20,000 vehicles in the first nine months of 2026 and surpassing combined sales of Toyota and Lexus. This success is attributed to the availability of affordable EVs, with some consumers waiting over two years for domestic models. South Korea's EV market, where approximately a quarter of new cars are electric, is more receptive than Japan's, where EVs represent only 3% of sales and hybrids remain dominant. Geely's Zeekr and Xpeng are also establishing footholds in South Korea, while Chery plans an entry in 2027.

Japan presents a more challenging market for Chinese automakers. Foreign brands hold a small market share, and consumer preference leans towards hybrids. BYD, despite expanding its dealership network, sold fewer than 4,000 cars in Japan in the first nine months of 2026, achieving a 0.1% market share. Though sales have increased annually, the pace is slow. Challenges include consumer trust regarding reliability and potential security concerns raised by lawmakers. Startups like EMT and distributors like folofly for Zeekr are still planning future model launches and targeting niche markets like taxi fleets, indicating a long-term strategy despite initial slow uptake.