Tesla outsold BMW and Mercedes combined in Korea last month

Tesla was the only import brand to sell more than 10,000 vehicles in South Korea in July, widening its lead over rivals and cementing what is effectively a one-brand dominance of the imported car market. The American automaker outsold second-place BMW by more than 3,000 units and extended its strength into the used-car segment as well.

According to the Korea Automobile Importers & Distributors Association (KAIDA) on Wednesday, newly registered imported passenger cars totaled 30,976 units last month, up 14.3 percent from a year earlier. Cumulative registrations through July reached 215,008 units, a 30.1 percent increase from the same period last year.

By brand, Tesla led all importers with 10,237 units sold — roughly one in every three imported cars sold in South Korea last month. BMW came in second with 6,533 units, followed by Mercedes-Benz at 3,959. Tesla's monthly total nearly matched the combined sales of BMW and Mercedes-Benz.

BYD ranked fourth with 2,846 units, followed by Lexus (1,474), Toyota (1,340), Volvo (958), Audi (935), Porsche (635) and Mini (632) to round out the top 10.

The rise of BYD, China's leading eco-friendly automaker, is also worth noting. The brand sold 11,675 units in the first half of this year, surpassing Lexus, Volvo and Audi to claim fourth place among import brands for the period. Its compact electric vehicle the Dolphin, starting at 24.5 million won ($17,200), and the Dolphin Active, starting at 29.2 million won, have been capturing demand for value-oriented electric vehicles.

Tesla also swept the top three spots in the model-level sales rankings. The Model Y Premium led with 6,612 units, followed by the Model Y Premium Long Range at 2,092 units and the Model 3 Premium Long Range at 1,239 units.

Tesla's strength carries over into the used-car market. An analysis by used-car platform K Car of average July prices across roughly 740 models within 10 years of release found that domestic car prices fell 1.4 percent from the previous month and imported car prices fell 1.5 percent. American-made Tesla vehicles were a notable exception, posting price gains on expectations surrounding Full Self-Driving (FSD).

The average market price of 2020–2022 model-year Tesla Model Y vehicles rose 2.0 percent from the previous month. Model Y units currently sold in South Korea are produced at Tesla's Shanghai factory, but American-made models were sold here before 2023. Growing awareness that FSD V14 Lite is available on US-produced vehicles has fueled interest in those models and lifted their used-car prices.

Tesla also topped the import market in the first half of this year, selling 56,139 units — equivalent to 30.5 percent of all imported car registrations during the period.

"As electric vehicle demand grows sharply, Tesla has the unique advantage of being the only brand — domestic or foreign — currently offering supervised Full Self-Driving in everyday use in South Korea," an industry official said. "Tesla's dominance looks set to continue for now."