Sales of imported light passenger vehicles in South Korea continued to accelerate in July 2025, with deliveries surging by over 23% to 27,090 units from 21,977 units a year earlier, according to registration data released by the Korea Automobile Importers & Distributors Association (KAIDA). The association attributed the market’s strong performance in the last few months to improved availability of new models, following inventory shortages earlier in the year.

In the first seven months of 2025, imported vehicle sales increased by 12% to 165,210 units, from 147,629 units a year earlier, driven by new models – particularly battery electric vehicles (BEVs) and hybrids. Overall demand for new vehicles in South Korea remains sluggish, however, reflecting weak domestic economic growth and high consumer debt. Domestic sales of vehicles produced by the five main local manufacturers increased by just 2.5% to 799,353 units in the seven-month period, underpinned mainly by new models from Hyundai and Kia.

German-owned brands accounted for 62% of total import sales year-to-date, with almost 103,000 units combined, led by BMW with an 8% rise to 44,770 units, while its Mini subsidiary saw its sales decline by 16% to 4,142 units. Together, the two brands accounted for almost 30% of total import sales. Mercedes-Benz saw its sales rise by 8% to 37,047 units, while Volkswagen Group reported a 26% jump to 16,635 units, thanks mainly to strong rebounds by Porsche and Audi.

US EV maker Tesla saw its sales rise by 32% to 26,569 units year-to-date, while Volvo’s sales declined by over 9% to 7,782 units. Toyota’s deliveries fell by less than 2% to 5,279 units, while its Lexus division enjoyed an 19% rise to 8,963 units.

Chinese automaker BYD, which officially entered the market earlier this year, has delivered 1,578 vehicles so far. The company said it aims to have 30 sales outlets operational by the end of the year.