On May 8, 2026, the landscape of the global automotive industry was the subject of intense scrutiny and debate in Seoul, as leading experts, industry executives, and policymakers gathered for the 'Future Car Industry Development Strategy Forum.' Hosted by the Korea Mobility Society and the Korea Automobile Mobility Industry Association (KAMA) at the Automobile Hall, the event unfolded against a backdrop of seismic shifts in the international car market—shifts increasingly driven by the rapid rise of Chinese automakers and the accelerating transition to electric vehicles (EVs).
One of the forum’s central themes was the mounting pressure facing South Korea’s automotive ecosystem, especially as Chinese companies like BYD and Geely expand their global footprint at breakneck speed. Jung Gu-min, president of the Korea Mobility Society, set the tone with a presentation titled '2026 Beijing Motor Show Key Trends and Implications.' He pointed out that China’s advances in autonomous driving, electric vehicles, and smart car ecosystems are no longer just regional phenomena—they’re now at the heart of global industry trends. According to Jung, "Global automakers are increasingly dependent on Chinese supply chains in their quest for price competitiveness, raising concerns about what he called 'Empty Shell Risk'—a scenario where only the brand remains, hollowed out by reliance on foreign suppliers." He didn’t mince words on the urgency for action: "Comprehensive government support is urgently needed to strengthen our domestic automotive ecosystem."
This sense of urgency was echoed by Kim Sung-jun of Golden Oak Tax Firm, who warned that the relentless advance of low-cost Chinese EVs, combined with aggressive national production incentives abroad, could see South Korea’s own manufacturing bases relocate overseas. "Major countries like the EU and Japan are racing to support domestic production. Given the automotive industry’s importance to our national economy, we should consider introducing a 'domestic production promotion tax system,'" Kim argued.
Indeed, the competitive threat from China is not limited to exports. As reported by NewsPim, Chinese automakers are rapidly shifting from a simple export model to a robust local production strategy by acquiring idle factories from global brands. Geely, for instance, recently agreed to take over Ford’s 'Body 3' assembly line at its Valencia, Spain plant, while BYD snapped up Ford’s Brazil plant and managed to roll out its first vehicle within just 16 months—a feat that has helped BYD surpass Tesla as the world’s leading EV manufacturer. Great Wall Motors, meanwhile, acquired Mercedes-Benz’s Brazil plant, with plans to restart operations by August 2027, and Cherry Automobile has begun acquiring Nissan’s South African facility. This acquisition spree is not just about speed—though retrofitting an existing plant can cut start-up times from years to mere months—but also about sidestepping tariffs and trade barriers, particularly in markets like the European Union.
Park Jung-gyu, a professor at KAIST, highlighted Japan’s approach as a model worth emulating: "Japan is directly supporting about one-third of battery facility investments with large-scale subsidies," he noted, suggesting that South Korea should consider similar bold measures. This was reinforced by Oh Sung-min of KAMA, who pointed out that over 95% of domestic parts suppliers are small or medium-sized enterprises, many of whom are struggling to adapt to the rapid technological transition. "A domestic production promotion tax system could stimulate demand across the industry and serve as a key tool to drive the entire ecosystem forward," Oh said.
Forum participants were unanimous in their call for swift, substantial government intervention to protect South Korea’s industrial base. As the global EV race heats up, there is growing consensus that only "bold and practical" policy support can help maintain domestic production and competitiveness. The stakes are high: in 2025 alone, BYD sold 6,107 electric vehicles in South Korea, and by April 2026, had already moved 5,991 units—a staggering 983.4% increase over the same period the previous year. Zeekr, the luxury EV brand under China’s Geely Group, is also poised to enter the Korean market as early as June 2026 with its mid-sized electric SUV, the 7X.
The international context makes these developments even more pressing. According to the China Passenger Car Association (CPCA), Chinese brand vehicle sales overseas surpassed 9 million units in 2025. This marks a shift from simple product exports to a more comprehensive overseas strategy that includes parts, local production, and services. Local production, in particular, is seen as a way to avoid tariffs and retain market share in regions with rising trade barriers. The NewsPim report further notes that in some Middle Eastern and Russian markets, Chinese EVs are selling for more than double their domestic price, with operating profit margins far outstripping those at home.
Industry insiders see this as a pivotal moment. As traditional automakers like Ford, Volkswagen, and Stellantis wind down internal combustion engine production and offload non-core assets, Chinese companies are swooping in with deep pockets and advanced EV technology. The result is a rapid realignment of global supply chains, reminiscent of the path once taken by Japanese carmakers decades ago.
Yet, there are signs that Chinese brands are no longer content to compete on price alone. At the 2026 Beijing Motor Show, foreign dealers heaped praise on BYD and Zeekr, noting that their technology and design have reached "global levels." One dealer remarked, "If after-sales service and warranty policies can keep up, their market dominance will only grow stronger." The days when Chinese cars were seen as cheap, low-quality alternatives may be numbered, as they now command premium prices in select overseas markets and enjoy robust profitability.
For South Korea, the challenge is clear: adapt or risk losing ground in a rapidly evolving industry. As Jeong Dae-jin, president of KAMA, put it, "Global companies are now collaborating with Chinese autonomous driving firms, and as the industry shifts toward software-centric models, parts suppliers need tangible support to keep pace with technological and investment demands." The message from the forum was unmistakable—without decisive policy action, South Korea’s automotive sector could find itself sidelined in the new era of electric and smart vehicles.
As the dust settles on the 2026 forum, the consensus is that the future of the Korean automotive industry depends not just on innovation, but on the speed and scale of its response to the global EV revolution. The next chapter will be written by those who can balance tradition with transformation, and who are willing to match the boldness of their competitors—mile for mile.