Why Tesla Sold Only 1 Electric Car in South Korea in January: Unraveling the Challenges

Why Tesla Sold Only 1 Electric Car in South Korea in January: Unraveling the Challenges

In January, Tesla Inc. only sold one electric car in South Korea due to a variety of obstacles that include lack of charging infrastructure, pricing, and safety concerns.Based on statistics from Seoul-based researcher Carisyou and the Korean trade ministry, the company’s poorest month since July 2022, when it sold no vehicles at all, was the month in which it sold a single Model Y SUV. As per Carisyou data, the quantity of newly registered electric vehicles in Korea decreased by 80% in January compared to December, affecting all automakers.

Concerns about battery fires and a lack of fast chargers are also reducing demand, and automakers are finding it difficult to keep up with consumer demand for EVs in South Korea due to rising borrowing rates and inflation. Since its China-made Model Y was one of the best-selling models last year, Tesla’s poor sales in January signal a significant change for the company.According to Lee Hang-Koo, head of the Jeonbuk Institute of Automotive Convergence Technology, many early adopters have already purchased EVs, and mass-market buyers are not now eager to purchase one. Additionally, he claimed, Tesla’s ties to China impacted the company’s appeal.

According to Lee, “the majority of Koreans who wanted to buy Teslas have bought one.” “After learning that some Teslas are made in China, some people don’t like them anymore,” he said. Customers are worried about the production quality. Strong seasonal variations in demand have an impact on Korea’s EV sales as well. According to Lee, a lot of people decide not to purchase cars in January in order to wait for the government to announce subsidies.

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Sales of electric vehicles (EVs) were delayed until after the subsidies were verified, a Tesla official in Korea told Bloomberg News. For Tesla, there are more difficulties. Less below the 57 million won needed to be eligible for a full government subsidy, the Chinese-made Model Y was offered for sale in July 2023 for 56,990,000 won ($43,000). In the 2024 plan, published on Tuesday, the sum has been reduced to 55 million won. Accordingly, half of the Model Y subsidies from Tesla will be given.