BYD Electric Taxi Sales Surge 15-Fold in South Korea, Overtakes KGM

Chinese electric vehicle manufacturer BYD has seen its taxi sales in South Korea increase more than 15-fold over the past year, surpassing KG Mobility (KGM) to become the third-largest supplier after Hyundai Motor and Kia. Although there remains a significant gap with domestic competitors, analysts predict that BYD will continue to expand its presence in the South Korean market, particularly in the personal taxi segment.

According to data from the Ministry of Land, Infrastructure and Transport obtained by lawmaker Kang Deuk-gu of the Democratic Party, BYD registered 305 new electric taxis from January to August this year, a dramatic rise from just 20 during the same period last year.

This growth has positioned BYD as the third-largest supplier of new electric taxis, following Kia (3,582 units) and Hyundai (2,928 units) for the same timeframe. This marks a significant advancement for BYD, which has only been actively selling in the domestic market for about a year. The company has moved up one rank from last year, overtaking KGM, which saw its registrations decline from 320 to 212 units, a drop of approximately 33.8%.

BYD's rapid expansion can be attributed to its cost-effective strategy. Electric vehicles generally incur lower maintenance costs compared to LPG vehicles, and BYD's initial purchase prices are lower than those of major electric models currently offered by domestic manufacturers. This aggressive pricing strategy is allowing BYD to penetrate the electric taxi market effectively.

For instance, BYD's mid-sized electric SUV, the Sea Lion 7, is priced at 44.9 million won, which is over 2 million won cheaper than Hyundai's mid-sized electric SUV, the Ioniq 5, which starts at 47.35 million won. The price difference compared to the mid-sized electric sedan Ioniq 6 (48.56 million won) is even greater, reaching 3.66 million won.

This cost-effective approach is particularly resonating in the personal taxi market. From January to August, 94.1% of BYD's new registrations were for personal taxis (287 units), while only 18 units were registered for corporate taxis. Given that personal taxis accounted for 81.3% of all new electric taxi registrations during this period, BYD's strategy appears to be effective in this segment.

Looking ahead, BYD is expected to continue expanding its presence, starting with personal taxis and eventually moving into corporate sectors. However, domestic manufacturers still dominate in terms of cumulative electric taxi registrations. As of the end of August, Hyundai held a market share of 54.1%, followed by Kia at 41.7%, KGM at 3.0%, and BYD at 0.8%.

Nonetheless, the narrowing gap is likely just a matter of time. BYD reportedly received inquiries from rental and corporate taxi companies early in its market entry but declined them, fearing that rapid supply through large corporations could cement a low-cost brand image. A BYD representative stated, "If the brand image becomes fixed, it could be quite challenging to escape that later on. For now, we are focusing on individual customers."