Key Takeaways:
- BYD excluded from South Korea's EV subsidy program starting July 2026
- Only passenger EV maker to fail among 35 applicants, with 27 selected
- BYD shares fell 1.2% in Hong Kong on the announcement
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BYD loses South Korea EV subsidies after failing new screening program
BYD Co. will lose eligibility for South Korea's electric-vehicle purchase subsidies starting next month after becoming the only passenger EV maker to fail a new government screening program, the Ministry of Climate, Energy and Environment said Tuesday.
"BYD scored below the 60-point threshold in our first-ever Electric Vehicle Promotion Project Operator evaluation," a ministry spokesperson said. "The program is designed to ensure that only automakers contributing to South Korea's EV ecosystem receive purchase subsidies."
The evaluation assessed 35 companies across five categories — technology development capabilities, supply chain contribution, environmental policy response, post-management sustainability and safety management — on a 100-point scale. Twenty-seven companies passed, while BYD became the only passenger EV manufacturer among subsidy-eligible applicants to fail. Zeekr Korea, which is entering the domestic market with its 7X model, was also excluded. Selected automakers included Hyundai Motor Co., Kia Corp., Renault Korea, KG Mobility, Tesla Inc. and BMW AG.
The ministry lowered the passing threshold from 80 out of 120 points to 60 out of 100 points last month after criticism that the original criteria discriminated against imported vehicles. BYD vehicles registered before the announcement remain eligible for subsidies.
The decision threatens BYD's expansion push in South Korea, where the Shenzhen-based automaker has been accelerating dealer openings and marketing. Without subsidies, BYD's models — which compete on price against subsidized rivals from Hyundai and Tesla — could lose a key cost advantage in a market where government incentives typically cover a significant portion of a vehicle's purchase price. BYD shares traded 1.2 percent lower in Hong Kong on Tuesday, reflecting investor concern about reduced competitiveness in a key overseas market.
This article is for informational purposes only and does not constitute investment advice.
[1] S Korea to End Purchase Subsidies for BYD Vehicles Starting Jul[2] BYD excluded from South Korea's EV subsidy program[3] BYD, Zeekr excluded from South Korea's EV subsidy program[4] BYD Excluded from South Korea's EV Subsidies, Only Passenger Maker - 조선일보[5] BYD Excluded From Korea's EV Subsidy Program - Seoul Economic Daily
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