South Korea 2024. Auto Market Down In Double-Digits (-12.7%)

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South Korean Vehicles Market off to a slow start in 2024. In February new sales reached 114,772 units (-21.5%). Despite GM Korea booms 128.3% in 7th position.

Market Trend and Outlook

Despite the market reported 8 monthly growths during the year 2023, February 2024 starts of with a negative setback by 21.5% reaching mere 114,772 new registrations. YTD sales reach 229,863 units (-12.7%). 

Looking at cumulative data from January brand-wise, Kia gains 1 spot ranking in 1st with 88,759 sales (+0.0%), followed by Hyundai which loses leadership ranking in 2nd with 75,532 new registrations (-23.8%), Genesis in 3rd with 21,931 units sold (+21.5%), BMW -up 1 spot- at 10,419 (-16.4%) and SsangYong -down 1 spot- in 5th with 7,510 sales (-46.0%).

Mercedes maintains 6th with 6,523 new registrations (-22.5%), in front of GM Korea -up 2 spots-at 4,881 sales (+128.3%) and Renault Samsung with 3,452 registrations (-20.4%).

Volvo gains 3 spots making it into 9th spot with 1,926 sales (+5.0%) in front of Lexus closing the Top 10 with 1,917 units sold (-0.2%).

Looking at specific models the Kia Sorento becomes the best seller, rising 7 spots with an 91.9% increase in year-on-year sales. Previous year’s leader the Hyundai Santa Fe gains 16 position with a 214.9% 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.

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