An attendee inspects a BYD Seal electric car during a launch event in Jakarta, Indonesia, in January. AP-Yonhap

BYD Korea will roll out its electric sedans early next year, aiming to expand its sales portfolio beyond commercial vehicles here, the Chinese carmaker said Wednesday.

The local subsidiary of the global electric vehicle (EV) and battery maker has already operated its business in Korea focusing on selling commercial cars, such as electric trucks and buses, since 2016.

However, the company is seeking to widen its revenue stream with its price-competitive electric sedans and SUVs here in a preemptive move to attract more customers during this global EV chasm period, before mass adoption of EVs.

BYD's entry into the Korean market may come as a major risk particularly to other global EV makers focused on selling cheap EVs. The carmaker did not unveil what models will be available for sale here, but they will include its mid-size flagship sedan, the Seal, and electric hatchback, the Dolphin. BYD Korea has already completed the registration of trademarks for the models here. The price for the Dolphin starts at less than 20 million won ($14,200) in China.

The Chinese carmaker is still lesser known in Korea, as the company has so far sold only commercial vehicles here, but BYD is the world's top EV maker. According to data from market tracker, SNE Research, BYD sold more than 2.6 million EVs across the globe between January and September, up 31.2 percent from the previous year, achieving the largest global EV market share of 22.3 percent.

BYD's decision to expand its business here is also seen as part of its efforts to increase sales channels in more Asian regions, as it faces strong tariffs from the United States.

BYD's electric Dolphin Mini is displayed in Mexico City, Mexico, Feb. 28. Reuters-Yonhap

"We have conducted an in-depth review with our experienced executives and partner firms, so we can meet the sensitive appetite of Korean customers," Cho In-chul, head of BYD Korea's passenger car division, said. "BYD Korea will make public details on the schedule for the launch of our passenger cars soon."

However, it remains to be seen whether the Chinese automaker will be able to expand its presence in the passenger EV market, as Korean customers still tend to view Chinese vehicles with low credibility, according to industry officials.

"Local customers have a tendency to purchase vehicles manufactured by trustworthy brands, rather than placing a top priority simply on price competitiveness," an official from the industry said. "The only and most powerful upside of BYD is its price. The Chinese carmaker needs to improve its brand value and awareness here for its smooth landing in the passenger car business here."

Another obstacle is Koreans' weak reliability on Chinese batteries following a series of EV fires here, according to the official.

"Even if BYD and CATL are considered global battery giants, local customers still prefer to purchase EVs equipped with batteries manufactured by Korean companies, after multiple EV fires were reported throughout this year," the official said.