Cars, a cocktail and a celebrity: South Koreans succumb to Tesla fever

HiteJinro

08/07/2020 24:00

By Hyunjoo Jin
    SEOUL, July 8 (Reuters) - From an eponymous cocktail to
eager buyers following the shipping routes of long-awaited cars,
Tesla Inc  TSLA.O  is having a moment in South Korea,
particularly among tech-savvy professionals.
    Kang Sung-mo, who runs an advertising production agency in
Seoul, is a convert.
    "I am not interested in cars, but I am interested in the
Tesla brand and its technology," the 39-year-old told Reuters.
    Kang bought a Tesla Model 3 in December, ditching the
Hyundai crossover he bought only last summer. Being associated
with Tesla's reputation for innovation was good for his image,
he said.
    The U.S. electric car maker had its best month for South
Korea in June, selling 2,827 vehicles and bouncing back from
weak sales in April and May which were hit by U.S. production
disruptions due to the coronavirus. The Model 3 is now the
country's No.2 imported vehicle, ahead of the BMW 5 series and
the Audi A6, and just behind the Mercedes E-Class. 
    By contrast, Hyundai Motor Co  005380.KS , the dominant
automaker in South Korea, saw sales of its Kona EV slump 31% in
June to 2,513 vehicles. 
    Another 4,000 to 5,000 South Korean customers have the Model
3 on order, although most of them may have to wait until at
least September for delivery, said a source familiar with the
matter. The source was not authorised to speak to the media and
declined to be identified.
    Tesla's rising popularity among affluent professionals in
South Korea, who have been relatively unscathed by the pandemic,
is one of many feathers in its cap.
    Highlighting the threat it poses to established brands,
Tesla last week surpassed Toyota Motor Corp  7203.T  as the
world's most valuable automaker while its second-quarter
deliveries smashed expectations at a time when sales at rivals
have been laid low by the pandemic.  urn:newsml:reuters.com:*:nL4N2DU0U4   
    South Korea's generous subsidies of 12.43 million won
($10,380) for the Model 3 have definitely helped sales, bringing
the car's price down to less than $40,000, but the Silicon
Valley automaker has also generated a genuine buzz.
    In social media posts, South Korean Tesla fans avidly track
the routes of ships bringing its cars to Asia, while at the
country's bars, the latest trendy cocktail is a mix of
HiteJinro's  000080.KS  Terra-brand beer and the Korean
traditional liquor 'soju'. Smashed together, their names are
pronounced "Tesla" in Korean.
    The automaker has additionally benefited from free
advertising after popular Korean actor Yoo Ah-in, known for his
sense of style, drove his Tesla Model X SUV to go grocery
shopping on a reality show aired last month. That has led to a
spike in orders for the vehicle, a second person familiar with
the matter said without elaborating.
    Some new Korean owners noted they bought a Tesla for
practical reasons.
    Kim Dong-hwan, who works in IT in Seoul, wanted to avoid
public transportation during the pandemic and driving fatigue on
his long commute.
    Not everything is perfect - his Model 3 has a panel gap and
he has to wait several months before it will be fixed - but Kim
says the benefits and emotional appeal of a technologically
advanced brand were worth it.
    "I am very satisfied given that Tesla's self-driving feature
has reduced fatigue while driving," he said.
    
    ($1 = 1,197.4600 won)

 (Reporting by Hyunjoo Jin; Additional reporting by Daewoung
Kim; Editing by Edwina Gibbs)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))