BYD Electric Cars Lose South Korean Subsidy Eligibility

China's leading electric vehicle manufacturer, BYD, will not receive government purchase subsidies in South Korea starting next month. The company was excluded from the list of 27 manufacturers and importers selected to participate in the 2026 electric vehicle supply project.

While BYD's exclusion from the subsidy program is a significant development for its market entry, the Ministry of Environment, Climate and Energy stated that applications submitted by June 30 will still be eligible for subsidies if they met the previous criteria. This provides a limited window for consumers to purchase BYD vehicles with government support.

The selection process, newly implemented this year, evaluated companies based on criteria such as technological development, supply chain contribution, environmental policy response, after-sales service, and safety management. Initially requiring 80 out of 120 points, the threshold was lowered to 60 out of 100 points without bonus points, reflecting industry feedback. Despite the relaxed criteria, BYD did not make the cut for the passenger vehicle category.