Hyundai Motor Group's think tank warned against underestimating BYD, as it plans to enter South Korea's passenger car market, IANS reported.
Yang Jin-soo, head of the mobility industry research division at Hyundai Motor Group Business Research Centre, said during a seminar with automotive industry reporters that “there is a clear need for vigilance given BYD’s competitive strengths.”
BYD recently established a South Korean sales subsidiary and plans to release passenger vehicles in the first quarter, as per Yonhap news agency.
Yang stressed on the fact that while Korean consumers may currently have a negative perception of Chinese brands, this could shift, depending on how BYD engages with local customers, IANS noted.
“Assuming that consumers will reject BYD outright is a mistake. We cannot afford to dismiss them lightly,” Yang warned.
Yang forecast a steady growth of the EV market this year, adding the plug-in hybrid electric vehicle (PHEV) segment is expected to outperform the battery electric vehicle (BEV) segment.
While BEV sales are expected to grow 18.9% on-year, PHEV sales are projected to jump 23.8%, offsetting the growth slowdown in the BEV segment.
This trend is anticipated to be particularly pronounced in China, the largest EV market. BEV sales in China are expected to grow 13.1% on-year to 6.97 million units, while PHEV sales are projected to climb 25.1% to 6.4 million units.
In the United States, BEV sales are expected to gain 18.3% to 1.94 million units, though challenges such as declining profitability and new policies under the incoming second Donald Trump administration could impact the market.
Yang predicted the global EV market, including BEVs and PHEVs, will grow from 17.2 million units in 2024 to 20.7 million units in 2025, while projecting global automotive sales, including all fuel types, to rise 1.9% to 85.9 million units in 2025.
“Interest rate cuts in major markets are likely to boost purchasing conditions, particularly in the second half of the year,” he said.