Chinese new energy vehicle (NEV) manufacturer BYD Auto has been excluded from the South Korean government’s battery electric vehicle (BEV) subsidy programme, under a new assessment system which became effective at the beginning of July.
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The Ministry of the Environment, Climate and Energy has put in place a new evaluation system, requiring BEV manufacturers to meet a number of key standards, including overall technological capabilities, contributions to the country’s supply chain, compliance with domestic environmental regulations, safety management, and minimum standards for after-sales services. Under a points-based evaluation system, manufacturers have to achieve a minimum of 60 out of an available 100 points to qualify for the government subsidies.
BYD began delivering vehicles to customers in South Korea in March 2025, reported a sevenfold surge in sales to 7,023 units in the first five months of 2026, making it the fourth-best-selling imported BEV brand in the country after Tesla, BMW and Mercedes-Benz. Total light vehicle import sales rose by 32% to 145,973 units in the five-month period.
BYD is understood to be the only established BEV brand to have failed to meet South Korea’s minimum subsidy threshold, disqualifying it from receiving the subsidies. The company has indicated it plans to increase its focus on plug-in hybrids in the country to make up for any BEV sales losses.
Earlier this year, the company launched three new models, including a rear-wheel-drive version of the Seal, the Dolphin hatchback, and the Sealion 6 Dual Mode intelligent (DM-i) plug-in hybrid electric vehicle (PHEV) model.
