Electric vehicles manufactured in China are now making up a significant portion of new registrations in South Korea. This growth is being driven by various Chinese automakers, supported by higher fuel costs and looser market restrictions.

Electric vehicles (EVs) made in China now account for one in every three new registrations in South Korea, as Tesla’s Shanghai-built models power the surge and Chinese carmakers start to gain traction. The country’s auto manufacturers have further room to expand, analysts said, supported by higher fuel prices linked to the US-Israeli war in Iran and looser restrictions than traditional target markets. Still, tightening subsidy regimes could slow the pace of expansion, they cautioned. Sales of...