BYD Targets PHEV Market, Aiming for Triple Sales Compared to EVs

Chinese automaker BYD is accelerating its entry into South Korea's eco-friendly vehicle market with its independently developed hybrid system. After focusing solely on battery electric vehicles (BEVs), the company plans to expand its lineup to include plug-in hybrid electric vehicles (PHEVs) in the second half of this year. Ahead of this launch, BYD unveiled its core technology for the first time in South Korea.

On June 17, BYD Korea held a '2026 DM-i Technology Briefing' in Gwanghwamun, Seoul, where it presented its PHEV-specific technology. The DM-i system is a hybrid technology developed by BYD that primarily utilizes an electric motor while employing an engine as a supplementary power source.

Kelvin Lai, BYD's Vice President of Product Strategy for Asia-Pacific, stated, "BYD is the world's first to realize PHEV production, and the global cumulative sales of vehicles equipped with DM technology have surpassed 8 million units."

The unveiling of the DM-i technology in South Korea comes as BYD prepares to launch its PHEV models later this year. Currently, BYD Korea is focusing on selling BEVs like the Atto 3 in the South Korean market, with no hybrid or PHEV models introduced yet.

However, as the BEV lineup establishes itself in South Korea, analysts interpret this move as a signal for BYD to target the PHEV market. Since entering the South Korean market last year, BYD's sales have significantly increased; from just 10 units sold in March, representing a mere 0.04% market share, to 1,032 units sold last month, capturing 3.46% of the market.

While BYD Korea has not disclosed specific sales targets for PHEVs, it anticipates that sales will be approximately three times higher than its current electric vehicle sales. This suggests a monthly PHEV sales volume of around 3,000 units. A BYD Korea representative noted, "Given that gasoline and hybrid vehicles dominate the market, we expect the demand for PHEVs to be higher than for electric vehicles."

BYD Korea will unveil its upcoming PHEV model at the '2026 Busan Mobility Show' on June 26. Industry insiders speculate that the first model will be the mid-size SUV 'Sea Lion 6,' which combines an electric motor-driven system with an engine and can travel approximately 100 kilometers on electric power alone. Sales in South Korea are expected to begin in the second half of this year.

Ultimately, pricing will be crucial. If BYD employs a cost-effective strategy for the PHEV market, competition in South Korea's eco-friendly vehicle sector is likely to intensify. BYD's entry could spark a price competition in the PHEV segment and increase consumer interest, as PHEVs have historically received less attention compared to BEVs and HEVs.