Chinese Cars Outsell Japanese in Korea for First Time, Led by EVs

In April 2026, Chinese-made vehicles accounted for 2,023 of newly registered imported cars in South Korea, capturing a 6% market share—surpassing Japanese-made vehicles (1,974 units, or 5.8%) for the first time. Total imported car registrations in South Korea that month amounted to approximately 34,000 units, with European-made vehicles leading at 16,800 units, followed by American-made vehicles at 13,600 units. The rapid growth of Chinese vehicles in South Korea has been primarily driven by electric vehicles (EVs). In the first quarter of 2026, Chinese EV sales in South Korea reached 25,000 units, surging 286% year-over-year and capturing a 36.5% share of the country’s EV market. Most Tesla Model Y units sold in South Korea are produced in China, while BYD reported first-quarter sales of 3,968 units—a nearly 400-fold year-over-year increase. BYD’s best-selling Dolphin model is priced at around 24.5 million KRW, offering a significant price advantage. Meanwhile, Japanese automakers have continued to scale back operations in South Korea. Honda plans to cease all vehicle sales in the country by the end of 2026, following Nissan’s exit from the Korean market in 2020. Currently, only Toyota and Lexus maintain active sales channels in South Korea. Japanese brands have seen their competitiveness steadily decline due to slow progress in electrification and limited product lineups.