Tesla's flagship car, the Model 3, is making a lot of huge waves in South Korea. Although the Tesla brand is widely considered to be concentrated in North America, it is slowly making its presence known in other markets. As of this writing, Tesla has released the Model 3 in South Korea, Japan, and Australia. Not only that it is impressive in its own right, but it would also appear that the South Korean market actually loves it.
There are a number of important factors to consider why Tesla is popular in South Korea. The South Korean government has always been a staunch supporter of renewable and clean energies. As such, it comes as no surprise why the South Korean government have instituted a massive subsidy and bonus program that aims to promote the sale of electric vehicles.
It is safe to say that Tesla cars are not cheap. The price point alone is already enough to sway people away from buying it. Tesla cars released in South Korea are no different. However, the South Korean government has approved a number of subsidy programs in order to pull the price down in order to make it more appealing to the masses.
The standard base price of the Tesla Model 3 is around 52 million South Korean won or about $43,000. That is not a far-fetched price point to its North American counterparts. However, the South Korean government is giving out incentives amounting to more than 20 million won. This incentive program alone is more than enough to slash the final price tag of the car by half. It is also important to note here that these incentives are offered both in the national and local level. This means that some local government units can offer massive subsidies, which can bring the final price of the car even more affordable.
Aside from South Korea, Tesla Model 3 is also making a great entry in Japan. Tesla has launched a test drive program in the country and has been a resounding success if the reviews are to be believed. Just like in South Korea, the Japanese government is also planning to offer substantial incentives to those buy electric cars, not just Tesla. The exact amount of the subsidy is not yet determined.
The electric vehicle revolution continues to rage and has now reached fever pitch in select Asian markets. Market analysts are positive that this trend will continue well within the next decade.
