Korean Media: South Korean Import Car Sales First Exceed 300,000 Units, Breaking the German Brand's Dominance!
On January 27, the Korean media outlet "Today's Finance" published an article stating that the annual sales of imported cars in South Korea have exceeded 300,000 units for the first time. The focus of market competition has shifted from brand awareness to price and technology competition, forming a multi-polar market structure. American and Chinese brands have joined the market, breaking the previous dominance of German brands.
According to data released by the Korean Association of Importers and Distributors of Automobiles (KAIDA), from January to November last year, a total of 278,769 imported vehicles were registered in South Korea, representing a 16.3% increase compared to the previous year. This has already surpassed the total sales of 263,288 units recorded in 2024. Considering the average monthly registration volume of about 25,000 units, the sales target of 300,000 units will be easily achieved. The share of imported cars in the domestic new car market in South Korea has also exceeded 20% for the first time. During the same period, the total sales of new cars in South Korea reached 1,381,422 units, with imported cars accounting for 20.2% of the market.
The external growth of the imported car market is mainly driven by electric vehicles. The market, which was once dominated by German brands, has changed due to the entry of Tesla and Chinese electric vehicles. From January to November last year, Tesla sold 55,594 units, ranking third among imported car brands, with a 95.1% year-on-year increase. This is mainly attributed to the launch of the Chinese-made Model Y model, whose sales have steadily increased, while Tesla also adopted a strategy of reducing the price of entry-level models by about 400 million won. The Model Y sold 35,363 units, making it the best-selling imported car.
The market share of Chinese electric vehicles is also expanding. In its first year in the market, BYD established itself with the compact electric SUV "ATTO 3" and the mid-size electric SUV "Sea Lion 7", selling a total of 4,955 units from January to November last year. On the other hand, the market share of German brands such as BMW, Mercedes-Benz, and Volkswagen Group has decreased from 62.7% in 2024 to 55.7% last year. The market share of American brands increased from 16.2% to 22.8% last year, while Chinese brands achieved a 1.8% market share in their first year in the South Korean market.
Industry insiders generally believe that this trend will continue in the short term. This is mainly due to the continued rise in market attention caused by Tesla's advanced driving assistance technology, while the resistance of South Korean consumers towards Chinese electric vehicles is also fading faster than expected. More Chinese electric vehicle brands, including Zeekr and XPeng, will also enter the South Korean market. This indicates that the import car market, especially the electric vehicle market, may experience further polarization.
Professor Kim Bok-su from the Department of Automotive Engineering at Daumun University said, "The South Korean domestic import car market is not exclusive. As long as the cars are good and offer good value for money, people will buy them without hesitation. Although the market size itself is not large, it has formed a high-priced market centered on premium brands, so global automobile manufacturers pay great attention to the South Korean market."
Original: toutiao.com/article/1855436185016320/
Statement: This article represents the views of the author."