South Korean Vehicles Market in 2024 dropped 5.7% in year-on-year volume, reporting 1.62 million new registrations. Tesla (+548.9%) continued to grow overtaking GM. Despite headwinds the EV segment outpaced the general market (-3.9%).
Market Trend and Outlook
In 2024, South Korea’s economy grew by a projected 2.2%, primarily supported by strong semiconductor exports, even as domestic demand showed a slower recovery. Inflation declined to 1.3% in October, close to the Bank of Korea’s 2% target, reflecting steady progress in maintaining price stability amid global uncertainties.
Key challenges for the country include an aging population, shifting trade dynamics, and the rapid pace of technological change. The government is focusing on addressing labor shortages through reforms to increase female workforce participation and attract foreign talent. At the same time, fiscal consolidation and monetary normalization are aimed at bolstering macroeconomic stability.
To sustain long-term growth, South Korea is investing heavily in areas like artificial intelligence and renewable energy, positioning itself to adapt to future global trends while enhancing its competitiveness in key industries.
South Korea’s EV sales declined for the second consecutive year but outperformed the broader market, highlighting the segment’s relative resilience amid a wider slowdown. Despite headwinds, South Korea remains a key player in the asian EV market. In 2024, EV’s captured 6.1% of the Korean market, totalling 99,093 sales (-3.9%).
Tesla maintained its lead with double-digit growth, outperforming the market. Hyundai and Kia trailed with the weakest results in the top 10, while Volkswagen surged 159.9%, securing a spot among the leaders.
In contrast with the general economic trend, the South Korean vehicle market lost momentum in 2024, falling 5.7% and reaching 1.62 million units. This trend was marked by declining sales during the first seven months of the year.
Looking at cumulative data from 2024 brand-wise, Hyundai was still the leader with 574,336 sales (-9.7%), followed by Kia with 548,312 new registrations (-3.0%). Kia and Hyundai together make up 69.2% of the market.
Genesis ranked in 3rd with 133,581 units sold (+5.5%), followed by BMW at 73,754 (-4.7%), and Mercedes in 5th with 66,400 sales (-13.4%).
SsangYong ranked in 6th with 47,046 new registrations (-25.7%), in front of Renault -up 1 spot- at 39,816 sales (+80.6%) and Tesla -up 8 spot- with 29,750 registrations (+548.9%).
GM Korea -down 2 spots- secured 9th spot in the rankings with 24,824 sales (-35.9%), in front of Volvo which closed the Top 10 with 15,051 units sold (-11.6%).
Looking at specific models, reported in the dedicated article, the Kia Sorento became the best seller, rising 2 spots with a 10.2% increase in year-on-year sales. The Kia Carnival -up 2 spots- followed in 2nd with a 18.5% increase.
Medium-Term Market Trend
South Korean automotive industry has been closed to foreign vehicles import until 2012. Then, the entrance of several new competitors fueled the market growth and the domestic sales grew up until the 2015, when the all-time record was established at 1.8 million sales.
Then the market was steady until the 2020, when the strong control over the covid diffusion allowed plus incentives to support the industry, pushed up the market (+5.8%) to hit the new record of 1.87 million. In this data there was a sort of pull-ahead effect, due to the incentives and then market started to moderately decline again.
In 2021 the market lost 8.5% in volume, falling to 1.72 million cumulative sales and in 2022 also lost another 2.5%, dropping to 1.67 million sales.
Perspectives are not positive. The market is fast moving towards electrification, but the high prices offered for EVS is discouraging part of consumers. In addition the industry suffer for the supply chain disruption, for microchips shortage and demand for cars is declining. Despite this, the South Korean Vehicles Market in 2023 totaled 1.72 million registrations, a 3.2% increase in year to date figures.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
