South Korean Vehicles Market in 2025 continues to grow. YTD sales up to September grew 5.3%, with Renault Samsung leading in growth and surging 110.7%. EVs boomed 55.1% while securing an increasing share of the total.
Economic Environment
Korea’s GDP growth is forecast to slow to 1.0% in 2025, before recovering to 2.2% in 2026, amid weakened exports and subdued investment due to heightened tariffs and global uncertainty. Domestic consumption is expected to improve from late 2025, supported by rising real wages and easing political tensions. Inflation remains close to the 2% target, while unemployment is projected to decline gradually as labour force participation increases, particularly among women and the elderly.
The Bank of Korea has begun loosening monetary policy, with the policy rate expected to fall to 2.0% in 2025, but fiscal policy remains relatively restrictive. A limited spending package has been enacted, yet overall consolidation of 1.1% of GDP is planned over 2025–26. Confidence has been dampened by recent political instability, including martial law and an impeachment process, though partial recovery is anticipated. Ongoing trade tensions, especially with the United States, pose further risks. Structural reforms in the labour market and public finances are deemed essential to improve long-term resilience and growth.
Automotive Industry Trend and Outlook
Despite losses in the US, South Korea’s export is reaching decade-high in September. Moreover, exports of eco-friendly vehicles and domestic automobile sales are also touching highest figures in recent years.
After a negative performance at the beginning of the year, YTD sales up to September gained 5.3% in year-on-year volume to reach 1,26 million units.
Brand-wise, Hyundai remained leader with a 35.5% share (+7.5%), followed by Kia in 2nd (+1.9%). Kia and Hyundai together make up 68.5% of the market.
Genesis ranked in 3rd (-13.8%), followed by BMW (+6.2%), and Mercedes in 5th (+0.5%).
Tesla -up 2 spots- ranked in 6th (+84.7%), in front of Renault Samsung -up 2 spots- in 7th (+110.7%) and SsangYong -down 2 spots- in 8th (-15.7%).
Lexus -up 2 spots- secured 9th (+14.1%), in front of GM Korea -down 2 spots- closing the Top 10 (+39.6%).
Looking at specific models, reported in the dedicated article, the Kia Sorento was still the best seller with a 9.5% increase in year-on-year sales. The Kia Carnival followed in 2nd with a 0.2% gain.
EV Market Trend and Outlook
South Korea’s EV sector is expanding in 2025, despite sluggish performance in Q1. Sales up to September grew 55.1%, reaching a 10% share of the total. Some of the factors explaining the sector’s surge include the launch of new vehicles by leading carmakers, in particular the Kia EV3, and the system of government policies to support EV adoption.
Tesla was still the leader, up 73.8% with a 33.4% share. Kia followed in 2nd, impressively growing 112.3% while Hyundai fell into 3rd, up 64.9%.
Medium-Term Market Trend
South Korea’s automotive industry remained closed to foreign imports until 2012. The entry of new competitors drove market growth, peaking at 1.82 million sales in 2016. The market then remained steady until 2020 when COVID-19 incentives pushed sales up 5.8% to a record 1.87 million units. However, this push-pull effect, where incentives accelerated short-term demand, led to declines of 8.7% in 2021 and 2.4% in 2022, dropping sales to 1.66 million.
Despite high EV prices, slow adoption, and supply chain issues, the market rebounded in 2023, growing 3.2% to 1.72 million units, only to fall again by 5.7% in 2024 to 1.6 million.
South Korea’s EV market has been highly volatile. After peaking at 17,769 units in 2018, sales nearly halved in 2019 before surging nearly tenfold in 2021 and doubling in 2022 to 108,758 units. In 2024, EV sales declined 3.4% due to safety concerns, limited charging infrastructure, high battery costs, reduced subsidies, and competition from hybrids.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
