The Korean car market will grow by 3.2% in 2025
- The South Korean passenger car market is projected to grow by 3.2% in 2025 compared to 2024, reaching a volume of 1.47 million units versus 1.425 million the previous year. Since 2021, this market has hovered around 1.40-1.47 million units and has not yet returned to the record levels of 2015-2020 (around 1.53-1.60 million units).
- Since 2005, the South Korean market had experienced strong growth, gradually increasing from 1 million units in 2005 to 1.57 million in 2015. However, this market experienced an initial period of stagnation between 2015 and 2020, with record levels but no further growth. On the contrary, the market declined in 2021 and remained virtually stable until 2025.
- The Korean Hyundai-Kia group traditionally holds the largest share of the South Korean market (73% by 2025), largely due to its extensive range of models in every market segment. This group far surpasses other carmakers. The two German premium brands, BMW (6% of the market) and Mercedes (4% of the market), occupy second and third place, respectively, bolstered by their strong premium brand image, which some Korean customers struggle to find within the Hyundai-Kia group, despite the presence of Genesis models. BMW and Mercedes are, of course, imported – imports of all brands currently account for 20% of the South Korean market – and thus represent half of all imports in Korea. Next come Tesla (4% of the market), Renault (3% of the market), which has a production facility in Korea, and KGM (3% of the market), which acquired the local brand SsangYong. GM Korea trails behind.