BYD (HKG:1211, SHE:002594) is expected to face challenges in penetrating the South Korean market, hindered by the country's economic slowdown, Yonhap News Agency reported, citing the Korea Automobile Manufacturers Association.

The association predicts the Chinese electric vehicle giant would experience initial setbacks in South Korea, similar to its trajectory in Japan.

The association said Korea and Japan share a similar market landscape, characterized by dominant local brands, low adoption rates of electric vehicles, and negative perceptions of Chinese brands.

However, the association believes BYD has the opportunity to target niche markets such as rentals, corporate clients, and young consumers, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)