Tesla craze in South Korea Model 30% of the sales of the second imported models

Published: Jul 08, 2020 16:37 (GMT+8)

SMM: it is reported that Tesla is sought after by consumers (especially tech-savvy professionals) in South Korea. In South Korean bars, there is a cocktail called "Tesla", and anxious consumers often track the progress of Tesla vehicles to figure out when they will be able to pick up the car.

Kang Sung-mo, who runs an advertising company in Seoul, is a big fan of Tesla. "I'm not really interested in cars, but I'm interested in the Tesla brand and their technology," Kang said. In December, Kang bought a Model 3 and sold the Hyundai crossover he bought last summer. He said that Tesla's good reputation for technological innovation helped him build a good image.

Other car owners pointed out that they bought Tesla out of actual demand. Kim Dong-hwan, who works for a IT company in Seoul, said he did not want to take public transport during the outbreak. Because of the long commuting distance and driving fatigue caused by driving a traditional car, he bought a Model 3 after consideration. "I am satisfied that Tesla's autopilot function can reduce driving fatigue," he said. "

Tesla's sales in South Korea were also affected in April and May as the epidemic disrupted production at its US plants. In June, however, Tesla sold a new record in South Korea, delivering 2827 electric vehicles. The Model 3 has become the second most popular imported model in South Korea, surpassing even the BMW 5-Series and Audi A6 and trailing only the Mercedes-Benz E-Class. By contrast, local sales of Hyundai, South Korea's dominant car, its all-electric model Kona EV, fell 31 per cent to 2513.

Another 4000 to 5000 South Korean consumers have booked Model 3, but most may not be able to pick up their cars until September, according to people familiar with the matter. In addition, South Korean consumers can enjoy a subsidy of 12.43 million won (US $10380) for Model 3, which will sell for less than US $40, 000, which has undoubtedly boosted sales of the car.

Tesla also got a "free advertisement". In a reality show broadcast last month, famous South Korean actor Yoo Ah-in went shopping in a Model X, further raising Tesla's popularity in South Korea. Tesla's orders surged after the show was broadcast, according to people familiar with the matter.

At a time when other car companies' sales were depressed by the pandemic, Tesla delivered more than expected in the second quarter. Last week Tesla overtook Toyota to become the world's largest carmaker by market capitalization, highlighting the threat Tesla poses to traditional carmakers.

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