Data from the Korea Automobile Importers & Distributors Association (Kaida) reveals a significant drop in Tesla car sales in Korea. In January, only one Tesla car was newly registered, compared to 1,022 vehicles registered in December. This decline can be attributed to the South Korean government’s efforts to reduce subsidies for electric vehicles (EVs) equipped with Chinese batteries.
The government is currently working on new subsidy rules for EVs this year, with a focus on cutting subsidies for EVs powered by cheaper Chinese batteries. The proposed regulations aim to provide lower credits to EVs with lower energy density. Specifically, the regulations target China’s lithium iron phosphate (LFP) batteries, which are cost-effective but have lower energy density compared to the high-performance nickel-cobalt-manganese (NCM) batteries favored by Korean battery manufacturers.
These new regulations are expected to take effect in February. While Tesla’s Chinese-made Model Y, which uses LFP batteries, gained popularity in the domestic market last year due to its lower price, the decrease in EV subsidies will likely impact its sales. However, Tesla has plans to introduce a similar version of the Model 3 in Korea soon.
In 2023 alone, a remarkable 13,885 Shanghai-made Model Ys were sold in Korea, making it the leading imported EV in terms of sales. Other EV models that use LFP batteries, such as Kia’s Ray EV, KG Mobility’s Torres EV, and Volvo’s EX30, are also present in the market.
As the government adjusts its policies to support EVs with high-energy density batteries, the impact on Tesla’s sales in Korea may be more significant. However, it remains to be seen how these changes will influence the overall EV market in the country.
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The source of the article is from the blog xn--campiahoy-p6a.es