In brief
Byd sold more than 20,000 cars in South Korea in nine months of 2026, surpassing the combined sales of Toyota and Lexus, as South Korean buyers chase affordable, quickly delivered EVs. In Japan, the Chinese maker’s sales remain modest at roughly 4,000 vehicles, with Japanese consumers preferring hybrids and wary of Chinese brands. Differences in market dynamics, brand perception, and EV adoption rates explain the stark contrast.
Byd sold more than 20,000 cars in South Korea during the first nine months of 2026, outpacing the combined sales of domestic stalwarts Toyota and Lexus, while its sales in Japan have remained modest at just around 4,000 vehicles, a figure that accounts for a fraction of Japan’s auto market.
Kim Min‑seon, a 48‑year‑old Seoul resident, bought a Dolphin compact from Byd in July for roughly $18,500. “Everyone reacted like, ‘Why did you buy a Chinese car? Are you trying to get yourself killed?’” she recalled. Her purchase was unthinkable a few years ago, when Chinese cars were seen as shoddy and untrustworthy.
Everyone reacted like, ‘Why did you buy a Chinese car? Are you trying to get yourself killed?’
Kim’s experience underscores the changing perception of Chinese automotive quality in South Korea, where demand for affordable, well‑equipped electrified vehicles is surging.
In a simple definition, an electric vehicle (EV) is a car powered entirely or partly by electricity, stored in on‑board batteries. South Korea’s new‑car market this year shows that roughly a quarter of all new vehicles are EVs, whereas in Japan the share sits at only about 3 %.
South Korean Market Surge
Byd’s strategy in South Korea has relied heavily on building a wide dealer network and tailoring its models to local tastes. Senior analyst Lee Jae‑il of Eugene Investment & Securities points to soaring petrol prices—up almost 10 % since the war in Israel—as a catalyst for consumers to seek cheaper alternatives. In contrast, Hyundai and Kia have focused mainly on premium EVs, offering only a handful of models under $30,000.
Geely’s new Zeekr brand joined the competitive field in June, taking orders for its 7X SUV and planning to open up to 14 showrooms by the end of the year, signalling a broader Chinese push into the Korean market.
They enter first, watch what happens and gradually adjust their strategy.
Tokyo‑based consultancy founder Liao Jingnan notes that Chinese automakers spend years building dealer networks and adapting cars to local conditions before moving into established markets.
Japanese Market Skepticism
In Japan, Byd’s sales total about 4,000 units, a mere 0.1 % of the country’s automotive market, according to recent estimates. Japanese consumers continue to favour hybrids carried by domestic manufacturers such as Toyota and Honda, and have expressed lingering distrust toward Chinese brands.
Industry experts cite strong brand loyalty and a preference for features such as hydrogen fuel cells and advanced safety systems as barriers for Chinese entrants. While Japan’s EV uptake remains low—around 3 % of new car sales—the market is still dominated by a few established players.
The stark contrast between South Korea and Japan illustrates how consumer attitudes, pricing strategies, and the pace of EV adoption can shape the fortunes of new entrants. As Byd and other Chinese manufacturers expand beyond their saturated domestic market, their ability to adapt to local preferences and build trust will be pivotal for long‑term success outside of China.
