Are Midsized Carmakers Struggling in S. Korea Due to Lack of New Models?
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Synopsis
South Korea's midsized car manufacturers are facing significant challenges in domestic sales, largely due to a lack of new model introductions. With sales lagging behind foreign competitors like Tesla and BMW, there is rising concern about their future in the market.
Key Takeaways
- Sales for midsized carmakers in South Korea remain low due to a lack of new models.
- Major foreign brands are outperforming local manufacturers.
- The combined market share of midsized carmakers has declined significantly.
- Demand for imported vehicles continues to grow in South Korea.
- Strategic changes are needed for local manufacturers to regain competitiveness.
Seoul, Oct 26 (NationPress) South Korea's three midsized car manufacturers have reported disappointing domestic sales through the third quarter of 2025, trailing behind prominent foreign brands due to a shortage of new model releases, according to data released on Sunday.
The total domestic sales for Renault Korea Motors, KG Mobility Corp., and GM Korea Co. reached 82,464 units by September, as per the figures compiled by auto industry tracker Carisyou. This raises concerns that their annual sales may barely reach 100,000 units this year, a record low.
In comparison, the three manufacturers' total domestic sales were 109,101 units in 2024, as reported by Yonhap news agency.
Breaking it down by company, Renault Korea Motors sold 40,431 units by the end of September, while KG Mobility followed with 29,969 units and GM Korea recorded 12,064 units.
Their sales figures have fallen short compared to major imported brands, with BMW, Mercedes-Benz, and Tesla achieving domestic sales of 57,840, 48,248, and 43,637 units, respectively, during the same timeframe.
An industry official expressed concern, stating, "It is troubling that South Korean manufacturers' performance has lagged behind Tesla, which has only introduced the Model Y here."
The three midsized manufacturers have gradually been losing market share domestically, with their combined market share dropping to 7.6 percent last year from 11.2 percent in 2021.
Industry analysts have linked the sluggish performance to the delayed launches of new models. Notably, Renault Korea Motors, which has typically been behind its medium-sized competitors, recorded the highest domestic sales among the three in the first nine months of the year, aided by its Grand Koleos SUV launched last year.
On the other hand, sales of imported vehicles in South Korea surged by more than 30 percent in September compared to the previous year, driven by strong demand for Tesla and stable sales of hybrid and electric vehicles (EVs), as per industry data.
According to the Korea Automobile Importers & Distributors Association (KAIDA), the number of newly registered imported vehicles reached 32,834 units last month, marking a 32.2 percent increase from 24,839 units registered a year prior.
KAIDA attributed this surge in sales to stable supply from various brands, new model launches, and proactive marketing strategies.
Point of View
I believe the current situation of South Korea's midsized carmakers highlights the critical need for innovation and adaptability in an ever-evolving automotive market. The lack of new model releases has placed these companies at a disadvantage, and their ability to respond effectively will determine their future success.
NationPress
26/10/2025
Frequently Asked Questions
What are the sales figures for South Korea's midsized carmakers?
As of September 2025, Renault Korea Motors, KG Mobility Corp., and GM Korea Co. reported total domestic sales of 82,464 units.
Why are midsized car manufacturers struggling?
The sluggish sales are primarily attributed to a lack of new model releases and increased competition from major foreign brands.
How do the sales of imported cars compare?
Sales of imported vehicles in South Korea rose by over 30% in September, showing strong demand for brands like Tesla.
What market share do midsized carmakers hold?
The combined market share of South Korea's three midsized car manufacturers was 7.6% last year, down from 11.2% in 2021.
What impact does the automotive market have on the economy?
The automotive industry plays a vital role in South Korea's economy, influencing job creation, exports, and technological advancements.
