Imported vehicles are rapidly reshaping South Korea’s passenger car market as overseas brands gain ground. Sales data from 2025 shows foreign automakers expanding shares, while domestic manufacturers face steady pressure. Electric vehicles now sit at the center of this shift, led by Tesla and supported by new Chinese entrants.
Tesla Drives Imported Vehicle Growth
Imported cars are nearing a record share in South Korea’s passenger vehicle market this year. From January through November, imports represented over one-fifth of new registrations. This share rose as overall vehicle sales increased modestly. Imported brands grew faster than domestic producers during the same period.
🇰🇷 TESLA IS EATING KOREA’S IMPORT CAR MARKET
Korea is about to hit a fresh record where imported cars grab around 20% of the entire market, and Tesla is one of the biggest reasons why.
From January to November, Tesla sales more than doubled to about 55,000 vehicles, pushing it… pic.twitter.com/FWlvBZgadd
— Mario Nawfal (@MarioNawfal) December 29, 2025
Electric vehicles play a central role in this growth trend. Imported models account for roughly half of recent domestic EV sales. In November alone, more than ten thousand imported EVs were registered. Tesla remained the largest contributor among imported electric brands.
Tesla sales nearly doubled compared with last year’s figures. Affordable models produced at overseas factories supported this increase. Updated versions of popular models also supported demand. As a result, Tesla narrowed the sales gap with established European brands.
Chinese Brands Expand Presence in Korea
Chinese automakers are also strengthening their position in the Korean market. Several brands entered or expanded operations during 2025. Showroom networks increased across major regions. Sales volumes, while smaller than Tesla, continued to rise steadily.
BYD expanded its physical presence with additional showrooms nationwide. The company recorded several thousand vehicle sales this year. Competitive pricing supported early demand. Other Chinese brands prepared launches for the coming year.
Geely’s premium EV brand plans model introductions in Korea. Xpeng is also preparing market entry. These moves add competitive pressure on both imports and local brands. Market observers expect further diversification among imported EV options.
Domestic Automakers Face Market Share Pressure
Domestic automakers recorded slower growth during the same period. Combined sales for major Korean brands rose slightly year on year. However, volumes remained below earlier peak levels. Mid-sized manufacturers reported weaker domestic demand.
Some domestic brands relied heavily on a limited number of models. Sales declines followed as new model momentum faded. Market share for smaller manufacturers stayed near previous lows. This trend raised concerns about product diversity.
Electric vehicles present added challenges for local producers. Imported EV brands surpassed domestic brands in manufacturer-level sales rankings. Tesla ranked first among EV sellers this year. Domestic leaders followed closely but lost the overall lead positions.
Hyundai and Kia adjusted internal structures during regular appointments. Changes focused on domestic and premium divisions. Industry sources linked these moves to market conditions. Competitive pressure from imported EVs remains strong.
Overall, Tesla led the imported vehicle surge challenging domestic automakers. Chinese brands also increased activity within the market. Electric vehicles continue shaping consumer preferences. The competitive balance in South Korea’s auto sector remains in transition.
