BYD disqualified from South Korean subsidies, as local supply rules tighten

South Korea’s Ministry of Climate, Energy and Environment disqualified BYD from its electric vehicle subsidy program on June 30. The government’s new criteria place heavy emphasis on contributions to the local supply chain.

This development follows a similar loss of subsidies for BYD in Japan. These policy shifts create significant hurdles for the automaker in two major Asian markets.

BYD relies on international expansion to counteract slowing sales in its domestic Chinese market. The exclusion from South Korean subsidies threatens the company’s global growth trajectory.