Tesla sold only one car in Korea in January

Auto NewsTesla sold just one electric car in South Korea in January as demand was hit by safety concerns, high prices and a lack of charging infrastructure, Bloomberg reported.Tesla sold just one Model Y in South Korea in January, according to Seoul-based research firm Carisyou and South Korea’s trade ministry, its worst month for sales since July 2022, when it sold no vehicles in the country. According to Carisyou, total new electric vehicle delivery in South Korea in January, including all carmakers, was down 80 percent from December 2023.

Demand for electric vehicles among South Korean car buyers is slowing as rising interest rates and inflation prompt consumers to tighten their spending, while fears of battery fires and the scarcity of fast-charging stations are also holding back demand.Lee Hang-koo, director of the Jeonbuk Automotive Integration Technology Institute, said many early electric car owners had already completed their purchases, while Volkswagen consumers were not ready to buy.”Most South Korean consumers who want to buy Tesla have already done so,” he said. “In addition, some people’s perception of the brand has changed after they recently discovered that some Tesla models are made in China,” which has raised concerns about the quality of the vehicles.EV sales in South Korea are also affected by seasonal demand fluctuations. Many people are avoiding buying cars in January, waiting for the South Korean government to announce new subsidies. A spokesman for Tesla Korea also said that consumers were delaying purchases of electric cars until the subsidy was confirmed.Tesla vehicles also face challenges in gaining access to South Korean government subsidies. In July 2023, the company priced the Model Y at 56.99 million won ($43,000), making it eligible for full government subsidies. However, in the 2024 subsidy program announced by the South Korean government on February 6, the subsidy threshold was further lowered to 55 million won, which means that the subsidy of Tesla Model Y will be reduced by half.