China-Made Tesla Model Y Tops South Korea’s EV Market in 2025

Tesla Model Y is the best-selling electric vehicle (EV), providing a comfortable user experience and modern design, and this EV has achieved a new milestone in South Korea’s EV market.

In 2025, South Korea’s EV market saw strong growth. A total of 220,177 new EVs were registered, a 50.1% increase from the previous year. This ended two years of decline and marked a return to expansion. For the first time, EVs made up 13.1% of all new vehicle purchases.

The growth came from government subsidies paid out early, strong marketing by companies, and the release of new models. In sales by brand, Kia led with 60,609 units sold (27.5% market share). Tesla was close behind with 59,893 units (27.2%), pushing Hyundai to third place with 55,461 units (25.2%). Other brands included KG Mobility, BMW, and China’s BYD.

Source – Tesla

By individual model, the China-made Tesla Model Y took first place by a wide margin, selling 50,397 units. This was a 169.2% jump from the year before. The updated “Juniper” version, produced in China and sold at a competitive price, drove much of this success.

Kia’s EV3 ranked second with 21,254 units, while Hyundai’s Ioniq 5 sold 14,275. The share of domestically made EVs fell to 57.2%, down 6.8 points from the prior year. Imported EVs rose to 42.8%. Vehicles produced in China performed especially well, with 74,728 units sold, a 112.4% increase, and taking 33.9% of the total market.

Industry groups note that the rebound depended heavily on popular models and government support rather than broad consumer demand. They express concern about the growing presence of China-made EVs, saying it pressures local manufacturing and supply chains.

The head of the Korea Automobile Manufacturers Association called for new policies, such as tax benefits for domestic production, to protect the industry. Some critics point out that Korean subsidies help foreign vehicles that receive heavy support in China but face restrictions elsewhere. These subsidies are worth an estimated 160 billion won for China-made EVs in 2025.