Korean Media: Domestic EV Sales in South Korea Double, While Hyundai Faces Struggles!
On August 4, Korean media outlet JoongAng Ilbo published an article stating that the trend of South Korea’s domestic automotive market in the first half of this year can be summarized as weak sales for Hyundai Motor, while electric vehicle (EV) sales are rapidly growing. Once considered the benchmark of South Korea’s automotive industry, Hyundai has underperformed in its home market, whereas EV sales and registrations have seen a sharp increase.
According to data released by the automotive industry, Hyundai sold a total of 316,713 vehicles domestically from January to June this year, marking a 10.8% year-on-year decline. Monthly sales trends have also been weak. Since February, Hyundai’s domestic sales have continuously declined, and in April it was surpassed by Kia, losing its title as the top-selling brand monthly—marking the first time in 28 years since Kia joined the Hyundai Motor Group that it outpaced Hyundai in monthly sales.
The decline in Hyundai’s sales carries significant symbolic meaning, far beyond mere volume drops. For years, South Korea’s domestic auto market has been dominated by Hyundai. However, in the first half of this year, Kia boosted its sales with strong performance in SUVs and EVs, while Tesla overtook German brands in the import car segment. This clearly indicates a shift in South Korea’s domestic auto market—from a structure historically dominated by internal combustion engine (ICE) vehicles toward one increasingly driven by electric vehicles and price competition.
In the first half of this year, South Korea registered 198,969 new electric vehicles, up 112.6% compared to the same period last year. The share of EVs among newly registered vehicles rose from 11.1% to 23.3%, meaning nearly one in four new cars is now an electric vehicle.
Tesla stands out as the most advantaged brand in this wave. In the first half of this year, Tesla’s registration volume in South Korea exceeded 56,000 units, surpassing BMW and Mercedes-Benz to claim the top spot in the import car market. Among them, Model Y accounted for over 40,000 registrations, becoming the best-selling imported model. Key drivers behind this growth include price cuts implemented at the end of last year and early this year, recovery in EV demand, and increased consumer awareness of charging infrastructure.
Kia has also benefited from the expansion of the EV market. In the first half of this year, Kia sold 72,078 electric vehicles in South Korea’s domestic market, setting a new record for first-half sales. In stark contrast to Hyundai’s poor performance, Kia’s sales strategy centers on entry-level electric vehicles.
The entry of Chinese EVs has also disrupted the market landscape. BYD registered more than 10,000 units in South Korea’s domestic market during the first half of the year, entering the top ranks of the import car market. With Chinese brands aggressively entering the competition through pricing advantages, the South Korean EV market is undergoing transformation, with fierce rivalry emerging among Hyundai Motor Group, Tesla, and Chinese automakers.
Industry insiders believe the trend observed in the first half of this year is unlikely to be a fleeting phenomenon. With high interest rates and economic slowdown making consumers more price-sensitive, EV manufacturers are responding by offering subsidies and cutting prices to stimulate demand. Meanwhile, as car replacement demand slows down, sales of ICE-powered vehicles are also weakening.
A South Korean industry expert said: “The direction of the automotive market in the second half of the year will likely be determined by electric vehicles. Key variables will be whether Hyundai can recover from its current slump, whether Kia and Tesla can sustain their EV momentum, and how much pricing competitiveness Chinese brands can maintain.”
Original article: toutiao.com/article/1872557303658563/
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