According to Mordor Intelligence, the Asia Pacific electric vehicle market share is expected to reach USD 777.62 billion by 2027, with a CAGR of 19.10%. Despite the fact that the pandemic left by electric vehicles cannot be denied and was unsettling in the market, the growth of mild hybrids and other electric vehicles did not stop.
Two of the emerging contenders, China and South Korea, are witnessing a significant uplift in the growing market for electric vehicles. Not only in manufacturing but also in charging infrastructure and battery technology.
Let’s compare the differences in the market structure, government support, and competitive landscape in China and South Korea:
Market Structure: China is the dominant country in the EV market in the world, with strong demand for EVs due to favorable government policies and incentives and the presence of several domestic and international manufacturers. South Korea, on the other hand, is smaller than the more mature EV market, but it has a well-developed battery and automotive industry, as well as high-quality, innovative EVs.
Government Support: EVs are essential to the Chinese government’s energy and environmental strategy, with significant subsidies and tax breaks promoting EV development and adoption. South Korea is also implementing various policies to encourage the growth of the EV market, including incentives for manufacturing, research and development, and consumer adoption.
Competitive Landscape: South Korea has a robust automotive industry with companies such as Hyundai and Kia, the leading developers of EVs, as well as in the battery industry with LG Chem and SK Innovation. However, China is home to various domestic and international manufacturers, such as BYD and Tesla, involved in EV development and charging infrastructure.
Battery Technology: A significant amount of investment was made by China and South Korea in the development of battery technology, with China focusing on large-scale production and South Korea focusing on advanced technology and innovation. CATL and BYD are two of the world’s largest Chinese manufacturers of lithium-ion batteries. In South Korea, LF Chem and SK Innovation are some of the leading technology companies with high-quality products.
When the two markets are compared, consumer demand for EVs is higher in China and growing faster than in South Korea. However, concerning charging infrastructure, government policies, and other domestic and international support, both countries are well equipped. The market size is smaller in South Korea, whereas China is one of the leading EV markets in the world.
Also, China is focused more on large-scale production and market growth, whereas South Korea is focused more on advanced technology and innovation. The difference highlights the broader economic and industrial priorities shaping the future direction of the two countries and competitiveness in the EV markets.