Sales of imported light passenger vehicles in South Korea increased by 9% to 29,817 units in August 2026, up from 27,304 units in the same month last year, according to registration data released by the Korea Automobile Importers & Distributors Association (KAIDA).

Import sales have risen sharply this year, driven by strong local demand for battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs). In the first eight months of 2026, deliveries surged by 27% to 244,825 units, up from 192,514 units in the same period last year.

See also: South Korea report: domestic sales plunge 28% in August

Imports have strongly outperformed sales by the country’s five main automakers, which reported a 6.4% drop in combined sales to 852,815 units year-to-date, mainly due to a sharp decline at Hyundai, as the automaker struggled with supply chain issues and industrial action over wages, while some of the smaller manufacturers have also struggled to keep pace.

Tesla has been behind most of the import segment’s strong growth this year, with deliveries surging by 122% to 76,776 units year-to-date, making it the leading import brand with a 31% share of segment sales.

BMW slipped into second place after its sales rose by just 1% to 51,863 units in the eight-month period, while its Mini subsidiary saw its sales rise by 13% to 5,425 units. Together, the two brands accounted for 23% of total import sales. BMW recently introduced its new battery-powered iX3 SUV, based on the company’s new ‘Neue Klasse’ platform.

Mercedes-Benz’s sales fell by 9% to 37,772 units year-to-date, despite the launch of a new product offensive earlier in the year. The company, which led the South Korean import segment just a few years ago, planned to bring in ten new and facelifted models in 2026 as it looks to strengthen its electrified vehicle line-up.

Volkswagen Group reported a slight sales decline to 19,009 units year-to-date, despite strong demand for Audi models. Porsche, which saw its sales fall by over 24% to 5,696 units, is expanding its sales network and had plans to launch more than ten new models in the country this year. Toyota’s sales surged by 22% to 7,542 units, while its Lexus division reported a slight decline to 10,133 units.

BYD has made strong inroads into the South Korean market in the last year, with sales jumping ninefold to 17,523 units in the first eight months of 2026. The company failed to qualify for BEV incentives under the government’s new points-based system announced in July, and has indicated that it will focus more of its efforts on the plug-in hybrid segment in its pursuit of further growth, starting with the launch of the Sealion 6 Dual Mode intelligent (DM-i) plug-in hybrid model.