BYD Outsold Toyota in South Korea — but Japan Is Proving a Rougher Road

BYD sold more than 20,000 vehicles in South Korea in the first nine months of 2026, overtaking the combined sales of Toyota and its Lexus brand, according to market research firm Carisyou, in a Reuters report published October 30. BYD sold about 18,000 electric and hybrid vehicles in the first eight months alone, a ninefold increase from a year earlier, according to Bloomberg Intelligence data, and cumulative registrations through September already more than doubled BYD’s annual target. BYD entered the South Korean market early last year and has overtaken Volvo and Toyota in the country’s imported-car market — all the more notable because BYD was excluded from government subsidies in July after failing to meet some requirements.

The buyer story explains the numbers. Kim Min-seon bought a BYD Dolphin in July for around $18,500: inexpensive, well equipped and, crucially, available. She had initially wanted a Hyundai Casper EV but was told she would have to wait more than two years for delivery. Petrol prices have surged almost 10% since the U.S.-Israeli war on Iran started, and Hyundai and Kia focus mainly on premium EVs, offering only a few for under $30,000, according to analyst Lee Jae-il of Eugene Investment and Securities. Hyundai Motor and Kia still account for about 72% of South Korea’s auto market, and Hyundai’s global sales fell 6% to about 139,000 over the same eight-month period, with Samsung Securities analyst Esther Yim forecasting Hyundai’s full-year global sales could fall short of its 4.16 million-unit target, coming in below 4 million for the first time since 2010 outside the pandemic year.

Japan is a different story. BYD started selling cars in Japan in 2023, has more than 75 dealerships, and still sees muted sales. Foreign brands account for only about 6% of passenger-car sales, drivers prefer the hybrids championed by Toyota, and only about 3% of new cars sold in Japan this year were EVs, versus roughly a quarter in South Korea. A Pew Research Center survey this year found 88% of Japanese and 71% of South Koreans hold an unfavorable view of China, though BYD Auto Japan said diplomatic strains have had no particular impact on its sales, showroom visits or inquiries. Geely’s Zeekr brand began taking orders for its 7X SUV in South Korea in June and plans up to 14 showrooms by year-end, while Chery is expected to enter in 2027. Korea shows Chinese EVs can win on price and availability; Japan shows they still have to win trust.