South Korea Electric Vehicle Sales Soar 42% Year-On-Year In First Half

According to Nikkei News, as South Korean automaker Hyundai Motor Group begins mass production of new models, the South Korean electric vehicle market has recovered from the slump in 2023. In the first half of this year, sales of electric vehicles in South Korea surged by 42.4% year-on-year to 92,235 units.

IONIQ 9; Image source: Hyundai Motor Company

According to South Korean government registration data, new electric vehicles in South Korea in 2024 Car sales have begun to recover, with a year-on-year increase of 5.8% to 122,528 units. This growth momentum accelerated further in 2025, with electric vehicle sales in South Korea exceeding 20,000 units in May, marking the first time in 14 months that this threshold has been surpassed. An industry insider stated, "We are finally starting to recover from the downturn."

Relying on the development momentum accumulated since 2010, South Korea's electric vehicle sales reached a record of 123,920 units in 2022. However, in 2023, demand in South Korea's electric vehicle market experienced its first decline since the COVID-19 pandemic in 2020.

In South Korea's electric vehicle market, Hyundai Motor Group holds a dominant position; its subsidiary Kia led last year with a market share of 29%, followed by the Hyundai brand with a 26% market share. The most popular imported brand, Tesla, ranked third with a market share of 24%.

The new models have become a key driving force in revitalizing the South Korean electric vehicle market. In August last year, Hyundai Motor Group announced that it plans to expand its electric vehicle lineup to 21 models by 2030.

The new models will include vehicles from the luxury brand Genesis, an electric version of the Hyundai Casper compact car, and models from the Hyundai Ioniq series. The single-charge driving range of these new models will be improved.

In June this year, Kia launched the PV5 model, the first product in its independently developed "Platform Beyond Vehicle" electric vehicle series. The first model in this series is a mid-sized van, and its interior—including seats and cargo space—can be customized according to customers’ specific requirements.

The Kia PV5 can be used for commercial purposes such as delivery services and food trucks, and it can also meet the needs of personal activities like camping. Kia's CEO and President Song Ho-sung refers to this type of customizable electric vehicle as "a new paradigm."

Overseas competitors are also entering the Korean market. Chinese electric vehicle manufacturer BYD began selling the Atto 3 SUV (known as "Yuan PLUS" in China) in Korea this year, marking the brand's first electric vehicle launch in the Korean market. In June this year, BYD's sales in Korea reached 214 units, ranking just behind imported brands such as Tesla, Audi, and Volkswagen.

BYD positions its models as a high cost-performance alternative to Korean domestic brands. The base model of the BYD Atto 3 is priced at 31.5 million KRW (approximately 22,600 USD), about 20% lower than electric vehicles of the same class from Hyundai and Kia.

BYD also promotes the safety of its electric vehicles through television advertisements. Meanwhile, BYD has opened service centers across South Korea to provide users with convenient maintenance, and this initiative has achieved good results.

As part of the government's environmental protection policy, South Korea is vigorously promoting electric vehicles. This year, the South Korean government has allocated 780 billion won for electric vehicle purchase subsidies. This subsidy policy includes a 20% discount for young consumers buying their first car.

Households in Korea with children under the age of 18 can receive additional subsidies: families with two children can receive a subsidy of 1 million Korean won, families with three children can receive 2 million Korean won, and families with four or more children can receive 3 million Korean won.

By 2027, South Korea's electric vehicles will enjoy toll reductions; by the end of this year, the number of fast charging stations nationwide in South Korea will increase to 4,400.

However, the growth rate of electric vehicle sales in South Korea has not yet met industry expectations. Last year, electric vehicles accounted for only 8.9% of newly registered vehicles in South Korea. In response, Hyundai Motor Group is accelerating the development of hybrid vehicles and range-extended electric vehicles (these models are equipped with small internal combustion engines that can provide additional power to the battery).