New York [US], May 17: Automakers are bolstering their electric vehicle (EV) strategies, as surging oil prices rapidly accelerate demand for EVs with lower fuel costs.
The trend is evident as more price-competitive EV models from Tesla and BYD are rapidly increasing their sales volume here. EVs from other mid-tier foreign carmakers are also gaining popularity with local customers.
According to the Korea Automobile Importers & Distributors Association, BYD Korea ranked fourth in imported car sales between January and April with 5,991 EVs sold here. The figure represents growth of approximately 1,000 percent from 553 vehicles sold last year.
Industry officials say that rising global oil prices linked to geopolitical tensions in the Middle East have prompted more consumers to shift from internal combustion engine vehicles to all-electric alternatives.
Jumping on the booming EV demand here, overseas automakers are preemptively building their own identity ahead of the mass adoption of EVs, in hopes of expanding sales.
Data from the Korea Automobile & Mobility Association showed total EV sales here surging 155.8 percent on-year to 87,683 units in the first quarter.
Following BYD, Lexus, Volvo and Audi ranked fifth through seventh in imported vehicle sales for the first four months combined.
Among them, Audi Korea showed the fastest growth rate, with its sales jumping 42.5 percent from a year earlier on solid sales of its flagship electric SUV, the Q4 e-tron.
Sales of Volvo Car Korea inched up 3.5 percent, reflecting its weak EV lineup and lackluster sales of its EX30 electric SUV.
Sales of Lexus Korea dropped 7.6 percent during the same period due to its reliance on hybrid models and the lack of EVs available for sale here.
Leading foreign carmakers such as BMW, Mercedes-Benz and Tesla are also focusing on sales of their strategic EV lineups to ensure sustainable growth.
"Mercedes-Benz recently held its world premiere of the all-electric C-Class in Seoul, and BMW Korea is also set to launch its new iX3 electric SUV in the third quarter to boost its EV sales here - both of which show the growing strategic importance of EVs in the Korean auto market," an industry official said.
According to data from the Ministry of Climate, Energy and Environment, the number of registered EVs in Korea topped the 1 million mark on April 15. Additionally, more than 100,000 EVs were newly registered between Jan. 1 and April 14 this year, reaching that mark around three months earlier compared to last year.
Source: Qatar Tribune