🔥 Trending South Korea's New Car Market: Imported Vehicles Capture Over 25% Share

The South Korean new car market is undergoing significant transformations, driven by evolving consumer preferences, technological advancements, and the increasing adoption of electric vehicles (EVs). Several key trends define this dynamic landscape as of mid-2026.

Overall Market Performance

The South Korean vehicle market is experiencing moderate growth. Year-to-date sales up to May 2026 saw a 1% increase ¹. In 2025, the full-year sales grew by 2.7% ². Despite some monthly fluctuations, the market generally shows an upward trend. For instance, in November, the new car market edged down by 1.1% year-on-year to 145,936 units, with local carmakers seeing a decrease while foreign brands experienced a significant jump ⁵. Similarly, in August 2025, the market edged up 1% year-on-year to 138,408 units ⁶.

Dominance of SUVs and Eco-Friendly Vehicles

A major shift in consumer preference is the move away from traditional sedans towards Sport Utility Vehicles (SUVs) and eco-friendly vehicles. SUVs now account for a substantial 60% of new car registrations ⁴. This trend is also evident in imports, where hybrids and EVs collectively make up 85% of imported vehicles ⁸.

Electric Vehicle (EV) Growth and Market Share

The EV segment is a primary growth driver. In 2025, EV growth was impressive, reaching a 10% market share and surpassing the Asian average ². This growth is further fueled by advancements in EV infrastructure and battery technology ³.

Key Players and Market Share

Domestic Brands

Hyundai remains a dominant force, holding approximately 45% of the domestic passenger car market ⁴. However, Kia is outpacing Hyundai in terms of growth, with sales up 4.6% as of May 2026 ¹. Domestic manufacturers, while still leading, have seen some declines in specific months; for example, in November, their sales were down 5.8% ⁵, and in August 2025, they were down 3.2% ⁶.

Foreign Brands

Foreign brands are making significant inroads into the South Korean market. In November, foreign car sales jumped by 23.4% ⁵. Tesla, in particular, has shown remarkable growth, surging by 250.8% into the third position by May 2026, displacing Genesis ¹. In August 2025, the Tesla Model Y was among the top-selling models ⁶. BYD is another rapidly growing foreign brand, climbing 11 spots to ninth place with a 558.8% increase in sales by May 2026 ¹. Renault Samsung also performed well in 2025 ².

Emerging Models and Technologies

New models like the Kia PV5 have recently entered the market and are appearing in sales charts ⁶. The focus on electric vehicle infrastructure and battery technology is expected to continue driving the automotive industry's growth, with the market projected to reach USD 425.43 billion by 2035, growing at a CAGR of 6.92% from 2026 ³.

Used Car Market and Online Sales

The used car market is also substantial, with 2.5 million transactions annually. A notable trend is the increasing role of online platforms, which now handle 15% of these used car sales, indicating a rapid shift in consumer buying behavior ⁴.

In summary, the South Korean new car market is characterized by moderate overall growth, a strong shift towards SUVs and eco-friendly vehicles (especially EVs), significant gains by foreign brands like Tesla and BYD, and the continued dominance but challenged growth of domestic giants like Hyundai and Kia.