The cumulative import volume of Chinese passenger cars in the domestic automotive market has surpassed 250,000 units in seven years, creating a powerful market wave.
Concerns are growing within the domestic auto industry that production disruptions driven by labor union strike pressures could lead to a rapid loss of the domestic market to Chinese-made vehicles.
According to an analysis of Ministry of Land, Infrastructure and Transport vehicle registration statistics by the CarIsYou Data Research Institute, a total of approximately 252,000 Chinese passenger cars have been imported into South Korea since 2020.
In 2020, only about 1,900 Chinese-made vehicles were imported, accounting for a mere 0.1% market share. However, the situation turned around starting in 2023 with the import of Tesla Model Y units produced at Tesla's Gigafactory in Shanghai.
At that time, approximately 17,000 units were imported, pushing the market share into the 1% range for the first time. Since then, the sales of Chinese-made models from brands under Geely Holding Group—such as Volvo and Polestar—alongside BYD's direct sales in South Korea, drove the import scale to approximately 51,000 units in 2024, achieving a 3.6% market share.
Last year, about 84,000 units were imported, pushing the market share past the 5% mark.
This year, in just seven months, imports have already exceeded 88,000 units, surpassing last year's total annual import performance. The vehicle market share also recorded 9.9%, bringing it within a hair's breadth of breaking the 10% threshold.
As the presence of Chinese-made vehicles continues to expand in the domestic market, the domestic finished car industry is voicing concerns over potential production setbacks caused by union struggles.
The Hyundai Motor union entered a partial strike on August 19, and a protest march to the Hyundai Motor Group headquarters in Yangjae-dong by the Korean Metal Workers' Union is scheduled for August 21.
Tensions are also running high as the Kia union, currently engaged in wage and collective bargaining negotiations, refuses overtime work. With brakes being applied to the production lines of Hyundai Motor and Kia—which accounted for over 80% of domestic automobile production last year—fears are growing that the pace at which Chinese-made vehicles encroach on the domestic market could accelerate.
Reported by Kim Taewon | Video by Jang Yujin | Graphics by Yang Hyemin | Produced by SBS Digital News
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