South Korea’s Automobile Market Projection for 2025

South Korea’s automobile market is expected to shrink by 8.3-5.4% from the previous year to around 1.6 million-1.65 million units in 2024. In the first half of 2023, sales were at a high level due to last-minute demand prior to the end of the reduction of individual consumption tax applied to automobiles. As a result, sales in the first half of 2024 were down 10% compared to the same period last year. Added to this is economic stagnation, resulting in the lowest full-year sales since 2014 (1.66 million units).