Domestic sales by South Korea’s five main automakers combined fell by almost 12% to 90,762 units in January 2025 from 102,719 units a year earlier, according to preliminary wholesale data released individually by the manufacturers. The data does not include sales by South Korea’s low-volume commercial vehicle manufacturers including Tata-Daewoo and Edison Motors, while import brands are covered in a separate report later in the month.

The market last month was held back by fewer working days due to the Lunar New Year holidays, which fell in February last year, and by weakened consumer and corporate sentiment following the country’s recent political unrest. High consumer debt continues to hold back spending, particularly on large items. The central bank is expected to resume cutting interest rates in the coming months to help support domestic consumption, following sluggish economic data in the fourth quarter of 2024.

Despite significant new model launches in recent months, most vehicle manufacturers reported sharply weaker domestic sales in January. Hyundai saw its sales fall by 7% to 46,054 units, while Kia’s sales dropped by 14% to 38,403. GM Korea reported the sharpest decline, of 58% to 1,229 units, while KG Mobility’s local sales plunged by 39% to 2,300 units. Only Renault Korea reported higher domestic sales last month, up by 58% to 2,601 units from depressed year-earlier levels – following its recent launch of the new Geely-based Grand Koleos hybrid SUV.

Global sales by the country’s “big-five” automakers, including vehicles produced overseas, fell by 4% to 593,385 units in January from 617,646 units a year earlier, with overseas sales also weaker last month – by 1.5% to 502,623 units from 514,743 previously.

Domestic sales plunged by almost 58% to 1,229 units last month after sales surged almost threefold to 2,894 a year earlier following the launch of the locally-made new Trax and the facelifted Trailblazer in the previous year. Other GM models sold locally include the Bolt EV, the Colorado and Sierra Denali pickup trucks and the Equinox, Traverse, Tahoe and Cadillac Lyric SUVs. Exports fell by 25% to 30,389 in January after surging by 165% to 40,300 units a year earlier. The company said it is stepping up its marketing efforts to help lift sales following last month’s sharp decline.

KG Mobility’s global sales fell by 13% to 7,980 units in January 2025 from already weak year-earlier sales of 9,172 units, reflecting sharply-lower domestic sales. The company, previously known as Ssangyong Motor, was acquired in late 2022 by a consortium led by local steel and chemicals firm KG Group.

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Domestic sales plunged by 39% to 2,300 last month after declining by over 47% to 3,762 units a year earlier, as the automaker continued to struggle with rising competition from other domestic manufacturers and from importers.

Overseas sales rose by 5% to 5,680 units last month after surging by 40% to 5,410 units a year earlier, as the company expanded into new global markets last year – including in Europe, the Middle East and South America.

The company plans to continue to expand its zero-emissions vehicle range, following the launch of a new minivan version of the Torres EVX battery-powered SUV last September. The new Musso EV pickup truck is scheduled to be released later this quarter.

KGM recently announced it had signed a strategic partnership with China’s Chery Automobile Company, involving platform licensing and product sharing aimed at helping it strengthen its SUV line-up. The deal will also give KGM access to readily available new energy vehicle (NEV) technologies including vehicle platforms.

Renault Korea‘s global sales more than doubled to 3,817 vehicles in January 2025 from very weak year-earlier sales of 1,871 vehicles, driven by sharply higher domestic and overseas sales.

Domestic sales rose by 58% to 2,601 units last month from 1,645 a year earlier, driven by the recent launch of the new Geely-based Grand Koleos hybrid SUV. Exports rose fivefold to 1,216 units last month from 226 units, most of which comprised shipments of the Arkana hybrid crossover vehicle (a rebadged XM3).

Renault Korea last year confirmed it will continue to overhaul its product range with a strong focus on SUVs, BEVs and hybrid vehicles, starting with the launch of the new Geely-based Grand Koleos hybrid SUV last July and the phasing out of its aging SM6 mid-size sedan at the end of last year. The company recently agreed to produce the Geely Polestar 4 BEV at its Busan plant from the second half of 2025, for sale domestically and for export.

Hyundai Motor’s global sales fell by over 2% to 310,399 units in January 2025 from 317,823 a year earlier, reflecting weaker domestic and overseas sales. Domestic sales fell by over 7% to 46,054 units from 49,810, with SUVs accounting for 14,836 units and the Genesis luxury brand accounting for 8,824 units.

Overseas sales fell by 1.4% to 264,345 units from 268,013 units a year earlier, underpinned by strong demand in North America – with US sales rising by 15% to 54,503 units. The company’s new EV plant in the US state of Georgia became partially operational last October, producing the Ioniq 5, with output set to ramp up later this year with the introduction of new Hyundai and Kia models including the Ioniq 9.

Hyundai has set a global sales target of 4,174,000 vehicles for 2025, including its Genesis luxury brand, representing a slight increase over 2024 volumes. This includes 710,000 domestic sales and 3,464,000 overseas sales. To achieve this goal, the company said it will focus “on strengthening its market competitiveness with a stronger range of electrified models, including hybrids and battery electric vehicles, and scaling up local production at its global manufacturing facilities.”

Kia’s global sales fell by just over 2% to 239,571 vehicles in January from 245,586 a year earlier, reflecting mainly a sharp decline in domestic sales. Overall volumes last month were underpinned by strong demand for the Sportage SUV, with 43,473 sales globally, followed by the Seltos and Sorento models with 22,198 and 21,421 units respectively.

Domestic sales fell by 14% to 38,403 in January from 44,608 units a year earlier, with the Sorento being its best-selling model with 7,454 domestic deliveries, followed by the Sportage with 6,547 units and the Carnival MPV with 6,068 sales. The company sold a further 175 special vehicles, down from 184 a year earlier, most of which were delivered to domestic clients.

Overseas sales increased slightly to 200,993 units last month from 200,794 a year earlier, underpinned by a 12% rise in US sales to 57,007 units. The Sportage was the brand’s best-selling model overseas with 36,926 deliveries. 

Kia is targeting a 4% increase in global sales to 3,216,200 units in 2025, including 550,000 domestic sales, 2,658,000 overseas sales and 8,200 SPV sales, supported by the recent launch of the new K4 and revamped K5 sedans and the Syros SUV in India. This year the company plans to roll out its new Tasman pickup truck, followed by the EV4 and EV5 BEVs. The company’s medium-term plan is to sell 4.3 million vehicles globally by 2030, including 1.6 million BEVs.

GM Korea’s global sales fell by 27% to 31,618 vehicles in January 2025 from 43,194 a year earlier, reflecting sharp declines in both domestic and overseas sales. The Trailblazer SUV and Trax crossover vehicle remain by far the company’s best-selling models, with most output shipped overseas.