South Korean Vehicles Market in October 2024 dropped by 0.3% in year-on-year volume, reporting 137,947 new registrations. YTD figures reached 1,32 million, down 7.1% from the prior year. Tesla boomed 92.7% and ranked 7th, climbing 4 spots.
Market Trend and Outlook
Korea’s GDP growth is projected to strengthen from 1.3% in 2023 to 2.6% in 2024, before moderating to 2.2% in 2025. This rebound will be driven by rising global demand, particularly for semiconductors, and a recovery in domestic consumption and investment as interest rates start to decline. Inflation is expected to remain around 3% in the short term due to elevated energy and food prices but should reach the 2% target by the end of 2024.
Addressing structural challenges like rapid population aging will require pension reform, boosting female employment, increasing immigration, gradual fiscal consolidation with a focus on SME productivity, and aligning greenhouse gas emissions policies with climate targets.
Despite the positive forecasts, the South Korean vehicle market in October 2024 remained mostly sluggish, dropping 0.3% in year-on-year volume and recording 137,947 new registrations. YTD figures at 1,32 million decreased by 7.1% compared to the prior year.
Looking at cumulative data up to October 2024 brand-wise, Hyundai was still the leader with 447,333 sales (-11%), followed by Kia with 435,475 new registrations (-7.1%). Kia and Hyundai together make up 66% of the market.
Genesis ranked in 3rd with 110,113 units sold (+4.9%), followed by Mercedes at 61,766 (+0.2%), and BMW in 5th with 59,098 sales (-1.5%).
SsangYong ranked in 6th with 42,720 new registrations (-22.0%), in front of Tesla -up 4 spots- at 26,785 sales (+92.7%) and Chevrolet -down 1 spot- with 21,068 registrations (-36.7%).
Renault Samsung secured 9th spot in the rankings with 20,587 sales (+10.7%) in front of Volvo -up 1 spot- which closed the Top 10 with 12,538 units sold (-12.2%).
Looking at specific models, reported in the dedicated article, the Kia Sorento became the best seller, rising 2 spots with a 10.1% increase in year-on-year sales. The Kia Carnival -up 2 spots- followed in 2nd with a 15.8% 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.
