This article is by Park Young-woo and read by an artificial voice.



Chinese EV makers are accelerating their push into Korea. With Xpeng - the so-called Tesla of China - establishing a local subsidiary in Seoul following BYD and Zeekr, the wave of competitively priced, high-packed Chinese EVs is making domestic automakers increasingly nervous.

Xpeng established its Korean subsidiary in June and is preparing for a full-scale market entry, according to industry sources on Tuesday. Observers expect the company to appoint a head of local operations soon and accelerate preparations, such as establishing a dealer network.

Founded in Guangzhou in 2014, Xpeng is known for its AI-based autonomous driving technology and software-centered vehicle operating systems. Like Tesla, it does not use lidar sensors but instead relies on vision AI using cameras. It also offers over-the-air software updates, an AI voice assistant and a highly developed digital user experience. Recently, Xpeng has expanded beyond EVs into autonomous driving, advanced air mobility and humanoid robots. Unlike some Chinese EV makers that grew on the back of battery production capacity, Xpeng is differentiating itself with strengths in software and AI.

The company's first model in Korea is expected to be the P7, a midsize electric sedan and its flagship product. The car boasts a driving range of up to 700 kilometers (435 miles) under Chinese standards and a maximum output of 593 horsepower. Positioned as a direct competitor to Tesla's Model 3, it incorporates Xpeng's proprietary software features such as the Xpilot autonomous driving system, over-the-air updates, and a voice recognition-based AI interface.

In China, the latest P7 models are priced between 219,800 yuan and 301,800 yuan ($30,900 and $42,400). Industry analysts predict that Xpeng will likely adopt a pricing strategy 20 to 30 percent lower than Tesla's in Korea, taking into account government subsidies, trim configurations and currency rates.



Zeekr, another Chinese EV maker, established a Korean subsidiary in February and is preparing to enter the premium EV segment. The company has recruited a former head of Audi Korea to lead operations and is reportedly considering launching high-end sedans.

"Consumer trust in Chinese EV brands has grown rapidly, as shown by the market response to BYD," said Lee Ho-geun, a professor of automotive engineering at Daeduk University. "Xpeng, too, could quickly expand its footprint in the domestic market based on its technology and competitive pricing. The entry of multiple Chinese brands may escalate competition not only between companies but also in the wider industrial ecosystem and technological leadership."

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.