Data released on Wednesday showed that the number of new electric vehicles registered in South Korea fell by 80% in January from December. Tesla Inc sold just one electric car in South Korea in January as a host of headwinds ranging from safety concerns to price and a lack of charging infrastructure weighed on local demand.
The company sold just one Model Y last month, its worst month since July 2022, when Tesla sold zero in South Korea, according to data from Seoul-based research firm Carisyou and South Korea's Ministry of Trade, Industry and Energy. Across all automakers, the number of new electric vehicles registered in South Korea fell 80% in January from December, Carisyou data showed.
In South Korea, automakers' enthusiasm for electric vehicles is slowing as rising interest rates and inflation prompt consumers to rein in spending, while concerns about battery fires and a lack of fast chargers are also dampening demand. Tesla's low sales in January mark a setback for the brand, as its China-made Model Y was one of South Korea's best-selling vehicles last year.
Lee Hang-Koo, director of the Jeonbuk Institute of Automotive Convergence Technology, said that many early adopters have already purchased electric vehicles, while mass-market consumers are not yet planning to buy them.
Sales of electric vehicles in South Korea are also affected by strong seasonal demand fluctuations, as many people don't want to buy cars in January and want to wait for the government to announce subsidies, Lee Hang-Koo said.