The dilemma of demand for electric vehicles continues to deepen, which is first confirmed by Tesla. According to data from South Korean research firm Carisyou and the South Korean Ministry of Trade, Tesla only sold one electric vehicle in the South Korean market in January.
The Tesla Model Y has experienced its worst month of sales in South Korea since July 2022. During the COVID-19 epidemic, there was a situation in the Korean market that one Tesla car was not sold for a month. However, after the epidemic, the sales volume dropped to one car, which was quite surprising.
According to Carisyou data, after counting all car brands, the number of new electric vehicles registered in South Korea in January also decreased by 80% compared to December. The combination of safety issues, price issues, and shortage of charging facilities has severely dampened market demand, which is an important reason for the sharp decline in electric vehicle sales compared to the previous month.
Sluggish sales
Lee Hang Koo, director of the North Korean Automotive Integration Technology Research Institute, said that many consumers who want to buy Tesla only buy one electric car, and the rest are ordinary consumers who are wait-and-see and hesitant. These people have no intention of entering the electric vehicle market now.
He also added that consumer enthusiasm for Tesla electric vehicles is slowing down, and news of battery fires and insufficient supply of fast chargers are limiting consumer willingness to purchase.
According to him, some Korean consumers are starting to worry about Tesla's quality issues and no longer like Tesla.
In addition, sales of electric vehicles in South Korea are also limited by seasonal fluctuations in demand. Lee pointed out that many people avoid buying cars in January because they want to wait for the government to announce subsidies for electric vehicles for the new year. This has also been confirmed by Tesla's South Korean spokesperson.
According to the latest subsidy regulations from the South Korean government, only electric vehicles priced below 55 million Korean won can receive full government subsidies, while Tesla Model Y is currently priced at 56.99 million Korean won (approximately 43000 US dollars), so it can only receive half of the government subsidies.