January was the worst month since July 2022 when the Austin, Texas-based automaker sold no vehicles in Korea, according to data from Seoul-based Carisyou and the Korean Ministry of Commerce. In January this year, Tesla sold only one car, the Model Y SUV. Decrease in demand for electric cars it’s not just about Tesla. Carisyou data shows that among all car manufacturers, the number of new electric vehicles registered in Korea fell by 80% in January. compared to December.
What lowers the demand for electric cars?
Automakers face slowing enthusiasm for electric vehicles in South Korea. Several factors influence the change in customer attitudes towards electric cars. Higher interest rates and inflation are prompting consumers to cut back on spending. Additionally, demand for electric cars is limited by concerns about battery fires and a shortage of fast chargers.
Tesla’s poor-selling January marks a major change for the brand because it’s made in China Model Y was one of the best-selling models last year.
Customers are waiting for subsidies
According to Lee Hang-Koo, head of the Jeonbuk Institute of Automotive Convergence Technology, the biggest enthusiasts are already they bought electric vehicles, and mass consumers do not want to buy them yet. Tesla’s popularity is also damaged by its ties with China, he added.
“Some customers stopped liking Tesla when they discovered some of them are made in China,” and consumers are concerned about production quality, he said.
On electric vehicle sales in korea also influenced by strong seasonal fluctuations in demand. According to Lee, many people avoid purchasing vehicles in January because they want to wait for the government to announce subsidies.
In July 2023, the company set a selling price for the made-in-China product Model Y at 56,990,000 won ($43,000), which brings it below the threshold of 57 million Korean won, which allows the Model Y to qualify for a full government subsidy.
