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South Korean Carmakers Slump: How Lack of New Models Cost Them Market Share

South Korea's midsized carmakers are facing a serious sales slump this year. Their combined domestic sales through September reached just 82,464 units, putting them on track for a record low annual performance. Meanwhile, foreign brands like Tesla, BMW, and Mercedes are posting much stronger numbers in the same market. Industry experts point to delayed new model releases as the primary reason for the domestic manufacturers' struggles.

Key Points: South Korea Midsized Carmakers Post Sluggish 2025 Sales

  • Combined domestic sales of three midsized carmakers reached just 82,464 units through September
  • Market share dropped from 11.2% in 2021 to 7.6% last year
  • Foreign brands like BMW and Mercedes outsold domestic midsized competitors
  • Renault Korea led the group thanks to Grand Koleos SUV released last year
2 min read

Midsized carmakers post sluggish sales in S. Korea amid lack of new models

Renault Korea, KG Mobility, and GM Korea struggle with domestic sales as foreign brands like Tesla and BMW surge ahead amid delayed new model releases.

Midsized carmakers post sluggish sales in S. Korea amid lack of new models
"It is concerning South Korean carmakers' performance lagged behind Tesla, which has introduced only the Model Y here - Industry Official"

Seoul, Oct 26

South Korea's three midsized carmakers have posted sluggish domestic sales through the third quarter of 2025, falling behind major foreign brands amid a lack of new models, data showed on Sunday.

The combined domestic sales of Renault Korea Motors, KG Mobility Corp. and GM Korea Co. came to 82,464 units as of September, according to the data compiled by auto industry tracker Carisyou, raising concerns that their annual sales may barely hover around 100,000 units this year, marking a record low.

The three carmakers' total domestic sales stood at 109,101 units in 2024, reports Yonhap news agency.

By company, Renault Korea Motors sold 40,431 units as of end-September, followed by KG Mobility with 29,969 units and GM Korea with 12,064 units.

Their performances lagged behind those of major imported brands, with BMW, Mercedes-Benz and Tesla posting domestic sales of 57,840, 48,248 and 43,637 units, respectively, over the same period.

"It is concerning South Korean carmakers' performance lagged behind Tesla, which has introduced only the Model Y here," an industry official said.

The three midsized carmakers have been gradually losing ground in the domestic market, with their combined market share standing at 7.6 percent last year, compared with 11.2 percent in 2021.

Industry watchers attributed the sluggish performance to the delayed releases of new models, noting that Renault Korea Motors, which had typically lagged behind its medium-sized rivals, posted the highest domestic sales among the three in the first nine months of the year on the back of its Grand Koleos sport utility vehicle released last year.

Meanwhile, sales of imported vehicles in South Korea rose more than 30 percent in September from a year ago, driven by strong demand for Tesla and steady sales of hybrid and electric vehicles (EVs), industry data showed.

According to the Korea Automobile Importers & Distributors Association (KAIDA), the number of newly registered imported cars totaled 32,834 units last month, up 32.2 percent from 24,839 units tallied a year ago.

KAIDA attributed the sales gain to the stable supply from some brands, new model launches and active marketing efforts.

—IANS

- IANS

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Reader Comments

P
Priya S
Interesting to see Tesla performing so well with just one model. Shows that quality matters more than quantity. Indian EV companies should take note - focus on making one great product rather than multiple average ones.
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Arjun K
Market share dropping from 11.2% to 7.6% in just 3 years is alarming! This should be a wake-up call for all midsize manufacturers globally. In India too, we've seen brands like Chevrolet exit because they couldn't keep up with the competition.
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Sarah B
The Grand Koleos example proves that one good launch can make a difference. Hope Indian manufacturers learn from this - timely launches with good features are crucial. Waiting too long between models kills customer interest.
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Vikram M
Honestly, I think these companies are focusing too much on exports and neglecting their home market. Same thing happens with some Indian companies - they prioritize international markets and domestic customers suffer with outdated models.
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Michael C
The hybrid and EV trend is clearly dominating. In India too, we're seeing this shift. Companies that don't adapt quickly will be left behind. Good lesson for our domestic manufacturers to accelerate their electric transition.

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