Tesla Korea’s newly released Model Y rear wheel drive (RWD) is generating a significant buzz, with the interest in the vehicle massively surpassing the auto industry’s initial forecasts. The growing demand has sparked intrigue regarding its potential impact on actual sales figures.
As of July 21, contracts for the Model Y RWD have exceeded a staggering 22,000 units, reports Money S (via @Tslachan). Although Tesla Korea has not released official contract numbers, industry insiders report that the agreement trends for the Model Y RWD have exceeded expectations. Deliveries of the electric vehicle (EV) are set to begin in Q3 of this year.
The launch has placed domestic auto giants Hyundai and Kia under considerable strain. This is due to the entry of an affordably-priced Chinese-made Tesla model at a time when EV sales have been sluggish this year.
Sales for Hyundai’s Ioniq 5 have dropped 37.1% this year, with only 9,504 units sold in Korea compared to last year’s 15,103 units. Kia’s EV6 also reported a decline of 10.1% in the first half of this year, selling 10,927 units compared to last year. Despite the decline in sales of these specific models, the overall EV sales volume for each brand has increased due to the newly released Ioniq 6 and Niro EV.
Potential buyers of the Model Y RWD have been advised by Tesla Korea that the purchase price could range between the late 40 million won to early 50 million won, factoring in government purchase subsidies and Tesla’s ongoing discount program. However, the subsidy for the Model Y RWD remains unconfirmed.
Differences between the U.S. and Chinese versions of the Model Y RWD include battery types and driving ranges, with the Chinese model equipped with a ‘lithium iron phosphate’ (LFP) battery and the U.S. model a ‘lithium ion’ battery. Additionally, the Chinese model is notably heavier, weighing in at 1910 kg compared to the U.S. model’s 1775 kg.
The ‘Model Y RWD’, manufactured at the Shanghai plant in China, is priced at 56.99 million won. It was initially released in Korea at 59.99 million won in 2021 as the ‘Model Y Single Motor Standard Range’, but the sales were immediately halted. The dual motor AWD Model Y was later released, with prices starting at a minimum of 96.64 million won.
Despite the pricing, the Ministry of Environment has not yet confirmed the subsidy for the Chinese ‘Model Y RWD’. An official from the Ministry stated that the ‘Model Y RWD’ is currently under evaluation for EV supply targets, with an announcement on subsidy for the model forthcoming.
Critics within the auto industry argue that improvements are needed in the subsidy policies for EV companies. The current criteria exclude new EV companies from those who are given eco-friendly vehicle supply targets. The Ministry of Environment has indicated that discussions on the next year’s purchase subsidies for eco-friendly vehicles will commence soon.
Earlier this week, the credit card industry in South Korea cited there were at least 15,000 Model Y orders placed in less than a week, but now we’re hearing the number is even higher.
