South Korea Sees Record Low New Car Purchases Among Young Buyers
Synopsis
A recent report highlights a worrying trend in South Korea, where the rates of new car purchases among young individuals have hit a 10-year low. This decline raises questions about the future of car ownership among millennials and Gen Z.
Key Takeaways
New car purchases by South Koreans in their 20s and 30s have declined to a 10-year low.
Registrations among those in their 20s account for only 5.6% of total new cars.
Older age groups are increasingly purchasing new cars.
Financial pressures and car-sharing services contribute to the decline among younger buyers.
Hyundai Motor Group is set to invest in advanced technologies.
Seoul, Feb 23 (NationPress) The percentage of new passenger car purchases by South Korean individuals in their 20s and 30s reached its lowest point in a decade last year, according to industry statistics released on Monday.
Data from the automotive tracking organization Carisyou revealed that new car registrations among those in their 20s totaled 61,962 in 2025, representing 5.6 percent of all new cars registered in that year, as reported by Yonhap News Agency.
In 2016, the share of new car registrations by individuals in their 20s was 8.8 percent, but this figure has steadily decreased over the years, culminating in the lowest level in ten years for 2025.
For those in their 30s, new car registrations amounted to 209,749 last year, making up 19 percent of the total registrations. This represents a decline of 6.9 percentage points over the past decade, also marking the lowest rate in ten years.
Conversely, vehicle purchases among older demographics have seen continuous growth. Individuals in their 60s registered 204,294 new cars last year, accounting for 18.5 percent, while those in their 70s bought 50,861 units, or 4.6 percent.
Industry experts have pointed to increasing financial pressures and the rise of car rental services via mobile applications as significant contributors to the decrease in new car purchases among younger consumers.
According to Kim Pil-soo, an automotive professor at Daelim University, "The expanding culture of online-based car-sharing has diminished the necessity for car ownership among those in their 20s and 30s." He added, "On the other hand, a growing number of people in their 60s and 70s are entering the workforce, and many are purchasing vehicles to ensure mobility."
In related news, Hyundai Motor Group is reportedly preparing to unveil a multi trillion-won investment initiative in reclaimed land in North Jeolla Province aimed at fostering advancements in artificial intelligence (AI), hydrogen, and robotics, as stated by industry sources on Monday.
Point of View
It is crucial to recognize the shifting dynamics in consumer behavior, particularly among younger generations in South Korea. The decline in new car purchases reflects broader economic pressures and changing attitudes toward mobility. This trend warrants close observation as it could reshape the automotive landscape.
NationPress
20 Jun 2026
Frequently Asked Questions
What is the current trend in new car purchases among young South Koreans?
New car purchases among South Koreans in their 20s and 30s have reached a 10-year low, with registrations showing a significant decline.
What factors are influencing this decline?
Rising cost pressures and the increasing availability of car-sharing services through mobile apps are major contributing factors.
How do purchases among older demographics compare?
In contrast to younger buyers, new car purchases among individuals in their 60s and 70s have steadily increased.
What are the implications of this trend for the automotive industry?
This trend may lead to significant changes in marketing strategies and product offerings, as manufacturers adapt to shifting consumer preferences.
Is there any investment plan from automotive companies in South Korea?
Yes, Hyundai Motor Group is preparing to announce a substantial investment plan in areas such as AI, hydrogen, and robotics.
