Honda Motor Company announced that it will withdraw from the South Korean vehicle market this year, in response to plunging sales in the country. The Japanese automaker confirmed that it will cease sales of passenger vehicles in the country at the end of the year, while continuing to sell motorcycles.

The company’s 100%-owned Seoul-based distributor was originally established as Honda Motorcycle Korea Company in 2001 to sell motorcycles, but changed its name to Honda Korea Company Ltd when it began selling passenger vehicles in 2004.

Honda’s main automotive products are the currently the CR-V SUV and the Accord sedan, which have come under increased pressure in recent years from imported electrified vehicles. Last year, the company’s sales fell by 22% to 1,951 units, while total sales of imported passenger vehicles rose by 17% to 307,377 units, according to industry data.

Less than ten years ago, Honda’s annual sales in South Korea exceeded 10,000 units. In the first three months of 2026, volumes plunged by a further 70% year-on-year to just 211 units.

Honda said in a statement: “In light of changes in the environment surrounding the global and South Korean automobile markets, and after thorough consideration from the perspective of concentrating corporate resources to strengthen the company’s mid- to long-term competitiveness, Honda decided to discontinue its automobile sales operations in South Korea.”

Honda said that it will continue to provide aftersales services to existing customers in South Korea after the end of 2026, including vehicle servicing and maintenance, parts supply, and warranty support.