South Korean Vehicles Market off to a slow start in 2024. In March new sales reached 145,658 units (-11.6%). YTD sales reach 377,043 (-12.1%). However, GM Korea and Tesla are booming.
Market Trend and Outlook
Although the market reporting 8 monthly growths during the year 2023, March 2024 continues a 2 month negative string with a negative setback by 11.6% reaching mere 145,658 new registrations. YTD sales reach 377,043 (-12.1%).
Looking at cumulative data from March brand-wise, Kia gains 1 spot ranking in 1st with 137,871 sales (-2.9%), followed by Hyundai which loses leadership ranking in 2nd with 126,197 new registrations (-21.6%), Genesis in 3rd with 33,770 units sold (+9.7%), BMW -up 1 spot- at 16,968 (-6.4%) and SsangYong -down 1 spot- in 5th with 12,212 sales (-46.5%).
Mercedes maintains 6th with 10,720 new registrations (-28.3%), in front of GM Korea -up 3 spots-at 6,919 sales (+80.3%) and Tesla -up 23 spots- with 6,200 registrations.
Renault Samsung lost 2 spots making it into the 9th spot with 5,491 sales (-21.1%) in front of Lexus -up 1 spot- closing the Top 10 with 3,135 units sold (-4.9%).
Looking at specific models the Kia Sorento becomes the best seller, rising 7 spots with a 65.8% increase in year-on-year sales. The previous year’s leader the Hyundai Santa Fe gains 17 positions with a 196.0% 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.
