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South Korea's Youth Car Purchases Hit 10-Year Low Amid Rental Boom

New car purchase rates among South Koreans in their 20s and 30s have fallen to their lowest levels in a decade. Industry data shows a steady decline since 2016, contrasting with increasing purchases by people in their 60s and 70s. Observers attribute the youth trend to rising cost burdens and the popularity of car rental services via mobile apps. Meanwhile, Hyundai Motor Group is planning a major multi-trillion won investment in AI and related technologies.

Key Points: South Korea Youth Car Purchases Drop to Decade Low

  • Youth car purchases at 10-year low
  • Older age groups buying more
  • Rising costs and car-sharing apps cited
  • Hyundai announces major AI investment
2 min read

New car purchase rates among young people drop to 10-year low in S. Korea

New car registrations among South Koreans in their 20s and 30s fell to a 10-year low in 2025, while older age groups increased purchases.

"People in their 20s and 30s tend to not feel the need to own a car as much due to the expansion of the online-based car-sharing culture. - Kim Pil-soo"

Seoul, Feb 23

The respective rates of new passenger car purchases by South Koreans in their 20s and 30s fell to their lowest levels in a decade last year, industry data showed on Monday.

According to the data from auto industry data tracker Carisyou, new car registrations among people in their 20s totalled 61,962 in 2025, accounting for 5.6 percent of all new cars registered last year, reports Yonhap news agency.

The share of new car registrations by those in their 20s stood at 8.8 percent in 2016 but has declined steadily over the past years, falling to the lowest level in 10 years in 2025.

The number of new car registrations for those in their 30s totalled 209,749 last year, accounting for 19 percent of the total. The rate has dropped 6.9 percentage points over the past decade, also to the lowest in 10 years.

In contrast, purchases among older age groups have steadily increased. People in their 60s registered 204,294 new passenger cars last year, accounting for 18.5 percent, while those in their 70s registered 50,861 units, or 4.6 percent.

Industry observers cited rising cost burdens and the spread of car rental services through mobile apps as key factors behind the decline in new car purchases among younger consumers.

"People in their 20s and 30s tend to not feel the need to own a car as much due to the expansion of the online-based car-sharing culture," said Kim Pil-soo, an automotive professor at Daelim University.

"Meanwhile, more people in their 60s and 70s are entering the job market, and some purchase vehicles to secure mobility," he added.

In the meantime, Hyundai Motor Group is preparing to announce a multi trillion-won investment plan in reclaimed land in North Jeolla Province to foster growth in areas of artificial intelligence (AI), hydrogen and robotics, industry sources said on Monday.

- IANS

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Reader Comments

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Priya S
Interesting to see the older age groups buying more. In India, many parents in their 50s/60s are now buying their first premium car after their children are settled, using their retirement savings. It's a shift in spending priorities. 🚗
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Rohit P
The professor hit the nail on the head. Car-sharing and rentals are the future. In cities, traffic is so bad that a car sits idle most of the time. Better to rent for weekend trips. This data should make Indian automakers like Maruti and Tata think about new business models.
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Sarah B
While I agree with the convenience factor, there's a flip side. This trend might hurt long-term savings and asset building for the youth. A car, while a depreciating asset, is still an asset. Renting everything creates a generation with no ownership. Just a thought.
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Vikram M
Cost is the biggest factor, yaar. With education loans, high rents, and wanting to travel, a car EMI is the last priority for someone in their 20s. This is very relatable for young professionals in India too. The dream is now a flat, not a car.
K
Kimberly X
The part about people in their 60s and 70s entering the job market and buying cars for mobility is fascinating. It shows how demographics and work-life are changing worldwide. In India too, we see more senior citizens active and independent.

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