South Korea's Answer To Tesla's Model Y, BYD Dominance: A New EV Policy That Favors Hyundai, Kia
Portfolio Pulse from Benzinga Neuro
South Korea has introduced a new EV policy favoring domestic automakers Hyundai and Kia over foreign competitors like Tesla and BYD. The policy aims to give Hyundai and Kia a competitive edge by adjusting subsidies based on vehicle range, price, and battery type, disadvantaging EVs with LFP batteries, predominantly used by Tesla and BYD. This move comes as Tesla's Model Y gains global popularity and BYD leads in BEV sales, with the policy potentially increasing Hyundai's market position.
February 16, 2024 | 6:53 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
BYD's competitiveness in South Korea may be impacted by the new EV policy, which reduces subsidies for EVs with LFP batteries, a technology widely used by BYD.
BYD, which also utilizes LFP batteries in its EVs, could face similar challenges as Tesla in the South Korean market due to the new subsidy structure favoring high-performance batteries.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Tesla may face challenges in the South Korean market due to the new EV policy, which disadvantages EVs with LFP batteries, like the Model Y, by offering lower subsidies.
Tesla's Model Y, which uses LFP batteries and has seen significant sales growth in South Korea, may see a decrease in competitiveness due to reduced subsidies under the new policy.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80