BYD buyers in Korea will no longer receive government EV subsidies from Wednesday after the Chinese automaker failed a new screening tied to local industry contributions.
The BYD Sealion DM-i, a plug-in hybrid version of the Chinese SUV, is unveiled at the Busan Mobility Show in June 26.NEWS1
Buyers of BYD electric vehicles in Korea will lose access to government subsidies starting Wednesday, while Tesla and other foreign brands keep theirs, after the Chinese carmaker failed a new government screening.
The Ministry of Climate, Energy and Environment on Tuesday released the list of EV makers and importers that passed an evaluation that determines which companies can take part in the country's EV subsidy program starting Wednesday. Only those that cleared it will have their vehicles subsidized.
Of 35 automakers, with some counted in more than one vehicle category, 27 were selected: 10 in passenger cars, nine in trucks and eight in vans and buses.
In passenger vehicles, 14 companies applied and 10 made the cut: Hyundai Motor, Kia, KG Mobility, Renault Korea, Tesla Korea, BMW Korea, Mercedes-Benz Korea, Volkswagen Group Korea, Volvo Car Korea and Polestar Automotive Korea.
BYD, China's largest EV maker, was not among them. This means that consumers who purchase BYD's EV will not be eligible for government subsidies.
The companies that were dropped lost the most points on local supply chain contributions, one of the ministry's key evaluation criteria.
"Whether a company has domestic R&D facilities, uses Korean-made parts and hires Korean workers carried a lot of weight, and that is where most of the point deductions occurred," a ministry official said.
Carmakers that failed the evaluation but were already eligible for subsidies can still receive them if they registered by Tuesday and were approved.
Hyundai Motor's Ioniq 5 EVHYUNDAI MOTOR
The evaluation was introduced this year for the first time, to steer purchase subsidies toward companies that contribute to Korea's EV industry. The criteria, however, faced criticism upon their announcement in March for unfairly discriminating against foreign carmakers.
The ministry then overhauled the rules. It cut the number of qualitative scoring items and lowered the threshold to pass.
Companies originally needed 80 points out of a possible 120, which includes bonus points; under the revised system, they need 60 out of 100, with no bonus points. The five categories are technology development, supply-chain contribution, response to environmental policy, continuity of after-sales service and safety management.
The ministry said it would keep improving the system "so that the EV subsidies funded by the state can contribute more effectively to building a sustainable domestic EV ecosystem and to expanding the public's use of EVs."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
