In July 2025, South Korea’s top five automakers saw a 1% increase in domestic sales, totaling 110,926 units compared to the previous year. This growth was fueled by the introduction of new models by Hyundai and Kia, despite overall sluggish demand due to high household debt and weak consumer sentiment. The country’s GDP also showed signs of improvement with a 0.6% expansion in the second quarter.
Hyundai reported a 2.3% rise in domestic sales to 411,127 units, while Kia’s sales remained steady at 321,440 units. GM Korea experienced a significant decline with sales plummeting by 40% to 9,347 units. However, Renault Korea saw a remarkable surge in domestic sales by 153% to 32,065 units following the launch of the Grand Koleos Hybrid SUV.
On a global scale, the combined sales of the top five automakers increased by less than 1% to 4,650,796 units in the first seven months of 2025. Hyundai’s global sales rose by 0.5% to 334,794 vehicles in July, with both domestic and overseas sales showing slight growth. Kia also saw a marginal increase in global sales to 262,705 vehicles, driven by the success of newly-launched electric and hybrid models.
GM Korea’s global sales rose by 23% in July, primarily due to higher overseas sales, while KG Mobility reported a 16% increase in global sales driven by strong domestic sales. The company plans to expand its zero-emissions vehicle range in response to increasing competition.
Looking ahead, Hyundai aims to achieve 4,174,000 global vehicle sales in 2025, including its luxury brand Genesis. Kia targets a 4% increase in global sales to 3,216,200 units, with a focus on expanding its lineup with new models. GM Korea and KG Mobility are also adapting to the changing market dynamics by introducing new strategies to boost sales and remain competitive.
Overall, South Korea’s automotive industry is navigating through challenges and opportunities, with automakers striving to innovate and adapt to meet the evolving needs of consumers worldwide.
