Due to Price Hikes and Challenge from Rivals
Tesla’s market share in Korea plummeted in the first half of this year. Its share in the United States is also expected to fall to the 10 percent range.
Sales of imported electric vehicles in Korea reached 12,959 units in the January-June period of this year, up 13 percent from 11,431 units in the same period last year, according to the Korea Automobile Importers and Distributors Association (KAIDA). Tesla sales data from the CarIsYou Data Lab shows that Tesla sold 6,746 units in the first half of 2022, down 31 percent from 9,705 units in the same period of last year. Tesla’s share in the imported electric vehicle market in Korea stood at 84.9 percent in the first half of 2021, but it fell to 52 percent this year.
A drop in Tesla’s sales in Korea was attributed to several price hikes coupled with competitors’ relative good performances. The price of the Model 3 Long Range is 84.69 million won, up more than 20 million won from 59.9 million won early last year. Sales of electric vehicles from other foreign automakers climbed. Sales of imported electric vehicles excluding Tesla hit 6,213 units in the first half of this year, up 260 percent from 1,726 units in the same period of last year. Mercedes-Benz sold 1,395 units, 4.1 times more than the 337 units in the same period of 2021.
The Bank of America and Merrill Lynch predicted that Tesla’s share in the U.S. electric vehicle market would fall from 70 percent in 2021 to 11 percent in 2025. This is because automakers such as Ford and General Motors have also begun to aggressively roll out electric cars.
The New York Times (NYT) reported that Tesla is facing strong competitors overseas -- BYD in China and Volkswagen, Stellantis, Hyundai Motor and Kia in Europe. Tesla’s vehicle delivery totaled 254,000 units in the second quarter, but BYD sold 70,000 units of electric vehicles in June alone.