South Korea’s imported car sales have surpassed 300,000 units for the first time ever. Among them, Tesla stood out most prominently, with sales more than doubling year over year. The strong performance was largely driven by the new Model Y, which began sales in Korea in January last year. In addition, despite persistent anti-China sentiment and growing wariness toward Chinese products, China’s BYD (Build Your Dreams) entered the Korean market and managed to rank within the top 10 imported car brands in its very first year.
According to data released on January 6 by the Korea Automobile Importers & Distributors Association (KAIDA), newly registered imported passenger vehicles in 2025 totaled 307,377 units, up 16.7% from 263,288 units in the previous year. This marks the first time imported passenger car registrations in Korea have exceeded 300,000 units since the market was opened to imports in 1987.
Once again, Tesla was the driving force behind this surge. The company sold 59,916 vehicles in 2025, more than double its 29,750 units sold in 2024. As a result, Tesla’s share among imported brands rose sharply, from 11.3% in 2024 to 19.5% in 2025.
A Market Where Porsche Outsells Toyota
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| The Trajectory of Porsche Sales in South Korea |
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| The Trajectory of Toyota Sales in South Korea |
Globally, Toyota remains the undisputed leader in the automotive industry. In the Korean market, however, it has struggled to gain traction.
In contrast, Korea’s imported car market presents an unusual picture—one in which Toyota is barely visible.
BMW (77,127 units), long regarded as a dominant player in Korea’s imported car market, maintained its top position, followed by Mercedes-Benz (68,467 units). Tesla climbed to third place among imported brands. While the gap in sales volume between first and third remains significant, Tesla’s status as a pure electric vehicle manufacturer effectively makes it the undisputed leader in the EV segment. Moreover, when looking at individual models, the single best-selling imported vehicle overall was Tesla’s electric SUV, the Model Y, with 37,925 units sold.
Following Tesla were Volvo (14,903 units), Lexus (14,891 units), Audi (11,001 units), Porsche (10,746 units), and Toyota (9,764 units). The sales gap between the third-ranked brand and those below it was substantial. Despite Volvo’s strong and steady performance in Korea, Tesla emerged as a quietly dominant competitor.
BYD’s Remarkable Debut
One of the most notable developments was BYD. Entering the Korean market for the first time last year, BYD sold a total of 6,107 vehicles, ranking 10th overall. For comparison, Tesla sold only around 300 vehicles in its first year in Korea. BYD launched the compact SUV Atto 3 in 2025, followed by the mid-size electric sedan Seal. It then expanded its lineup further with the launch of the mid-size SUV Sealion 7, seemingly mirroring Tesla’s expansion strategy and offering a three-model EV lineup.
As a Chinese brand, BYD initially struggled due to concerns over quality and reliability. It overcame these doubts through a “value-for-money” strategy, emphasizing strong performance at competitive prices. In September 2024, BYD surpassed 1,000 monthly sales for the first time. Given its relatively low brand recognition compared to other imported automakers, this represents remarkably rapid growth.
Building on this momentum, BYD plans to introduce lower-priced models in 2026, including the compact hatchback Dolphin. However, whether these models can succeed in Korea—a market often described as a “graveyard for hatchbacks”—and whether BYD’s value strategy can disrupt local market preferences remains an open question.
Sales by Powertrain Type
By powertrain, hybrids clearly dominated the market. Hybrid vehicles accounted for 174,218 units, more than half of total sales. They were followed by electric vehicles (91,253 units), gasoline vehicles (38,512 units), and diesel vehicles (3,394 units). In terms of year-over-year growth, electric vehicles recorded the steepest increase at 84.4%. As EV adoption accelerated, gasoline (-38.5%) and diesel (-54.9%) vehicles both saw sharp declines.
Although there have recently been announcements of delays or cancellations in EV investment plans, the market data suggest a gradual but steady shift toward electric vehicles. Moreover, the current government has set a goal that by 2030, 50% of new vehicles sold should be eco-friendly models such as electric or hydrogen-powered cars.
As a result, pressure is mounting on domestic automakers such as Hyundai Motor Group, which have adopted production strategies aimed at maintaining hybrid volumes and existing internal combustion engine models. At the same time, the growing presence and scale of Chinese brands in the EV market pose an increasingly serious competitive threat.
Korean EVs Falling Behind in Autonomy and Value
According to KAIDA, registrations of domestically produced passenger vehicles by Hyundai Motor, Kia, GM Korea, KG Mobility, and Renault Korea rose only 2.7% in 2025, from 1,174,560 units to 1,206,136 units. This growth rate pales in comparison to the 16.7% increase in imported vehicle registrations. Meanwhile, the market share of imported cars among new vehicle registrations rose from 18.3% in 2024 to 20.3% in 2025, while domestic brands’ share fell from 81.7% to 79.7%.
While the decline may appear modest for now, the pricing landscape for electric vehicles raises deeper concerns. Korean-branded EVs are generally positioned at relatively high price points, making aggressive price cuts difficult. With the share of EVs expected to rise sharply within the next two to three years, the outlook for Korean EVs appears paradoxically uncertain—caught between Tesla’s superior autonomous driving capabilities and Chinese brands’ strong value propositions.
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