Tesla Surpasses Mercedes-Benz to Become South Korea's No.2 Vehicle Importer

In a significant market shift, Tesla has overtaken Mercedes-Benz as South Korea's second-largest vehicle importer, buoyed by the introduction of upgraded Model 3 and new Model Y variants.

With prices starting at ₩51,990,000 ($38,500), Tesla's expanded lineup now competes for leadership in the nation's import rankings, reflecting the company's growing influence and the increasing consumer shift towards electric vehicles. This development marks a notable achievement for Tesla, given its limited presence in the South Korean market at the beginning of the year.

Tesla Expands in South Korea with Upgraded Model 3 and More Model Y Variants, Challenges Traditional Import Leaders

In a recent report by Teslarati, Tesla Korea's order page shows that the upgraded Model 3 starts at ₩51,990,000 ($38,500) for the Rear-Wheel Drive (RWD) version. The Model 3 Long Range Dual Motor All-Wheel Drive (AWD) costs ₩59,990,000 ($44,500) before options. The Model Y Long Range Dual Motor AWD starts at ₩63,990,000 ($47,400), while the Model Y Performance begins at ₩71,990,000 ($53,400).

Tesla's South Korea order page estimates that the upgraded Tesla Model 3 will be delivered in 1-3 months for both RWD and Long Range Dual Motor AWD versions. The Model Y RWD, Long Range Dual Motor AWD, and Performance are all listed with 3-6 months delivery time.

During the first quarter, Tesla sold only one variant of the Model Y in South Korea, the base Rear Wheel Drive (RWD) version, and the upgraded Model 3 was not sold at all. Despite this, the Korea Automobile Importers & Distributors Association reported that Tesla ended March 2024 as the country's second-largest vehicle importer, with 6,025 registrations.

For the first time, Tesla dethroned Mercedes-Benz, South Korea's traditional second-largest vehicle importer. Mercedes-Benz faced challenges in South Korea last month, including delivery delays caused by Middle Eastern political tensions.

Since Tesla only sold the Model Y RWD in South Korea during the first quarter, the company's performance there was already impressive. Tesla's 6,025 registrations were comparable to the country's leading vehicle importer, BMW, which had 6,549 registrations. With the upgraded Model 3 and two other Model Y variants now available to consumers, it may only be a matter of time before Tesla dominates South Korea's rankings for imported vehicles.

Tesla Overtakes Mercedes-Benz to Clinch Second Place in South Korea's Imported Vehicle Market Amid EV Incentives Surge

According to industry data, Tesla surpassed Mercedes-Benz as South Korea's second-largest vehicle importer in March 2024. That's not bad for an automaker that made headlines in early February after only selling one car in South Korea in January 2024.

According to the Korea Automobile Importers & Distributors Association, South Korea saw 25,263 newly registered imported vehicles in March 2024, up 6% from 23,840 in March 2023. According to The Korea Times, Tesla accounted for 6,025 of the 25,263 imported cars registered last month.

BMW was South Korea's top vehicle importer in March 2024, with 6,549 units. Mercedes-Benz, previously South Korea's second-largest vehicle importer, recorded 4,197 registrations in March 2024. This is the first time Tesla has surpassed Mercedes-Benz in terms of sales in South Korea. According to industry analysts, Tesla's momentum accelerated following the confirmation of government EV incentives last month.

Mercedes-Benz experienced delivery delays due to Middle Eastern political tensions. These delayed deliveries most likely resulted in a significant decrease in vehicle registrations.

Last month, the Tesla Model Y outsold its rivals in South Korea, selling 5,934 units. The Model Y was followed by the BMW 5, which sold 2,259 vehicles, and the Lexus ES, which sold 822. The price of the Model Y may have contributed to its popularity in South Korea. The Model Y Rear Wheel Drive (RWD), the only variant available in the country, was released for 55 million won ($40,800), less expensive than its US counterpart.

Other Model Y variants, including the Model Y Long Range Dual Motor All Wheel Drive (AWD) and Model Y Performance, are still unavailable in South Korea. The upgraded Model 3 sedan was not launched in the country.

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