Demand for electric vehicles (EVs) in South Korea’s new car market is declining, but the used car market tells a different story, with EV sales on the rise. This trend persists despite significant challenges for the EV sector, including limited charging infrastructure, reduced government subsidies, and heightened “EV phobia” after a major fire in August at a charging station in Cheongna.
Several factors are fueling the growth in used EV sales. The expiration of a two-year mandatory holding period for many EVs has increased inventory, leading to substantial price reductions. Popular models such as Hyundai’s Ioniq 5, Kia’s EV6, and Hyundai’s Ioniq 6, released between 2021 and 2022, are now entering the used car market, with some selling for half the price of new models.
The inherent characteristics of EVs are also boosting their appeal in the secondhand market. EVs have 30–40% fewer components than internal combustion engine vehicles, reducing the likelihood of mechanical issues. Their longer part replacement cycles, excluding wear-and-tear items like tires, make them a cost-effective choice for budget-conscious buyers.
Hyundai and Kia’s launch of certified pre-owned EV programs has further strengthened consumer confidence. These programs include battery performance tests, such as verifying driving range per charge, addressing one of the primary concerns for potential buyers—battery quality.
According to Car Is You, a South Korean automotive market research firm, approximately 25,000 used EVs were sold between January and September this year, a 47% increase from the same period last year. Meanwhile, new EV sales declined by 8.5% during the same period. Though used EVs account for only 2% of total used car sales, their rapid growth amid an overall slowdown in both the new and used car markets is notable.
A key trend in the used EV market is its diversification. While Tesla’s Model 3 dominated sales in 2022 and 2023, Hyundai’s Ioniq 5 took the top spot this year, with sales doubling to 3,300 units. Kia’s EV6 also saw a twofold increase in sales, ranking third in the market.
Prices for some EV models have dropped sharply in recent months. For example, the Volkswagen ID.4 saw its price fall by 10% in September compared to August, according to K Car, a leading used car platform. Following the Cheongna fire, Mercedes-Benz models such as the EQE, EQA, and EQB saw prices decline by about 5%, with some now selling for half their original cost. Hyundai’s Kona Electric, which starts at approximately 40 million won new, had a used market price of just 17.38 million won in September.
Listings for used EVs are also rising. On the Encar platform, around 19,000 EVs were listed from January to September, surpassing last year’s total of 17,400. EVs now account for 2.64% of all listings, compared to just 0.32% in 2020. “Used EVs offer strong price competitiveness compared to new models, attracting budget-conscious consumers,” said an Encar representative.
The longer part replacement cycles and simpler structure of EVs make them particularly attractive to secondhand buyers. Unlike internal combustion cars, EVs experience less wear and tear, reducing concerns about frequent repairs or part replacements.
The trend isn’t confined to South Korea. In the United States, one of the world’s largest auto markets, used EV sales surged by about 70% in the first half of the year compared to the same period in 2023, according to Cox Automotive.
Industry experts anticipate continued growth in the used EV market as battery capacities improve and charging and maintenance technologies advance. “As battery technology evolves and charging infrastructure expands, the demand for used EVs will rise steadily,” said an industry official.