In April 2025, domestic sales by South Korea’s main automakers saw a significant increase of over 7% compared to the previous year, reaching a total of 127,639 units. This growth was primarily driven by the introduction of new models by leading automakers such as Hyundai and Kia. Despite this positive trend, overall demand in the country remained subdued due to factors like high household debt and weak consumer sentiment.
The economic landscape in South Korea also faced challenges, with GDP shrinking by 0.2% in the first quarter of 2025. To stimulate domestic consumption, the central bank lowered its benchmark interest rate to 2.75%. Uncertainty surrounding US trade policies further added to the cautious outlook for businesses in the country.
Hyundai, the largest automaker in South Korea, reported a 4.5% increase in domestic sales for the first four months of the year, reaching 233,780 units. The company’s global sales target for 2025 is set at 4,174,000 vehicles, with a focus on expanding its range of electrified models and increasing local production capacity.
Kia, another prominent player in the South Korean automotive market, saw a 5% rise in global sales in April, with strong demand for SUVs like the Sportage and Sorento driving growth. The company aims to achieve a 4% increase in global sales to 3,216,200 units in 2025, supported by new model launches and a focus on electric vehicles.
GM Korea experienced a decline in global sales, with both domestic and overseas sales dropping in April. The company’s CFO mentioned the possibility of relocating operations to the US in response to import tariff hikes. KG Mobility reported a fall in global sales, with plans to expand its zero-emissions vehicle range through strategic partnerships.
Renault Korea saw a slight decrease in global sales in April but witnessed a strong rebound in domestic sales following the launch of the Grand Koleos hybrid SUV. The company is restructuring its product range to focus on SUVs, BEVs, and hybrid vehicles.
Overall, the South Korean automotive market continues to navigate challenges while striving for growth through innovation, new product offerings, and strategic partnerships. The industry remains dynamic and competitive, with automakers adapting to changing market conditions and consumer preferences to stay ahead in the global automotive landscape.
