Hyundai Motors and Kia accounted for more than 90 percent of domestically manufactured car sales in South Korea last year. This strong performance is in sharp contrast to the challenges faced by General Motors Korea, KG Mobility, and Renault Korea Motors, which are struggling to gain ground in the domestic market.
Hyundai Motors and Kia’s share of domestically manufactured car sales reached 91.5 percent in 2023, according to sales data by both companies on Jan. 7. This marks an increase of 2.9 percentage points from the year before. Hyundai alone holds more than half of this market with a 52.5 percent share, while Kia reached its highest-ever market share at 39 percent.
Other carmakers have not fared so well. GM Korea held a 2.7 percent share in the market last year, while KG Mobility’s market share dropped to 4.4 percent from 4.9 percent in 2022. Renault Korea’s share halved from 3.8 percent to 1.5 percent during the same period. Renault Korea sold a total of 22,048 units last year, with sales falling behind Hyundai’s single model, the Genesis GV80, which sold 28,860 units.
Industry insiders have attributed GM Korea and Renault Korea’s lackluster sales to the lack of new, innovative models. KG Mobility, which owns SsangYong Motors, launched the Torres and its electric variant Torres EVX in 2022, but these launches haven’t been enough to elevate the carmaker’s presence in the domestic market.
Some experts are concerned that Hyundai Motor Group’s dominance in the domestic automobile market may limit consumer choice and create potential market distortions. “Such market monopolies can lead to increased prices and delayed quality improvements,” said an industry insider.
The imported car sector faces similar problems. BMW and Mercedes-Benz have also solidified their positions in Korea, jointly accounting for 56.9 percent of imported car sales, according to data released by the Korea Automobile Importers & Distributors Association. The imported car sector is dominated by luxury brands such as BMW, Mercedes-Benz, Volvo, Lexus, Audi, and Land Rover, which collectively hold a market share of 77.7 percent.
