China-Made EVs Surge Led by 'Model Y'... New Electric Vehicle Registrations Up 50%

220,000 New Electric Vehicles Registered
Market Penetration Rate Reaches 13.1%... First Time in Double Digits

Last year, the number of newly registered electric vehicles in South Korea increased by 50.1% compared to the previous year, marking a rebound after two consecutive years of negative growth. The surge in demand was driven by popular models from various manufacturers, particularly the affordable China-made Tesla Model Y.

According to the "2025 Domestic Electric Vehicle Market Summary Report" released on January 20, 2026, by the Korea Automobile & Mobility Association (KAMA), the number of new electric vehicle registrations last year reached 220,177 units.

The electric vehicle penetration rate (share of purchases) hit 13.1%, surpassing double digits for the first time ever. The association attributed the market rebound to factors such as the government's early disbursement of subsidies and policy support, aggressive promotional competition among manufacturers, and the launch of new models.

In particular, the Tesla Model Y sold 50,397 units last year, capturing a 26.6% share of the passenger electric vehicle market. Hyundai Motor Company and Kia contributed to market expansion by successively launching new models such as the EV4, EV5, EV9 GT, PV5, and Ioniq 9, while KG Mobility attracted new demand by introducing the Musso EV, Korea's first electric pickup truck.

By manufacturer, Kia (60,609 units), Tesla (59,893 units), and Hyundai (55,461 units) led the market, resulting in a three-way competition. The share of imported electric vehicles expanded rapidly, with their market share rising to 42.8%. Conversely, the share of domestically produced electric vehicles fell from 75% in 2022 to 57.2% in 2025.

Among European brands, BMW (7,729 units), Volkswagen and Audi (6,674 units), and Porsche (3,625 units) saw growth, while Mercedes-Benz (2,072 units) experienced a sales decline for the second consecutive year following a fire incident in 2024.

Notably, sales of China-made electric vehicles surged. Driven by the influx of China-produced Tesla units and the successful entry of new brands like BYD and Polestar, sales of China-made electric vehicles increased by 112.4% year-on-year to 74,728 units, strengthening their presence in the market. The association stated, "The proliferation of China-made electric vehicles has positive aspects, such as expanding consumer choice and lowering prices," but also explained, "Given the pressure on domestic manufacturing bases and supply chain competitiveness, a mid- to long-term response is necessary."

Yonhap News Agency

Electric vehicle penetration rates varied significantly by region, depending on the scale of subsidies and the state of charging infrastructure. North Gyeongsang Province recorded the highest penetration rate at 16.2%, supported by subsidies of up to 11 million won, while Seoul lagged behind the national average (13.1%) at 12.8% due to a lack of charging infrastructure in apartment complexes and relatively lower subsidies.

Jeju Island, benefiting from both infrastructure and subsidy advantages, saw a personal purchase penetration rate of 33.1%, meaning one out of every three residents chose an electric vehicle.

The association assessed that this was not a structural change in electric vehicle demand, but rather the result of the popularity of specific models combined with policy support. It also emphasized that the government's role must be further strengthened to achieve the national greenhouse gas reduction target (NDC) and secure industrial competitiveness.

Kang Namhoon, President of KAMA, stated, "In order to protect the domestic automotive ecosystem against the aggressive expansion of China-made electric vehicles, it is necessary to establish effective support measures such as a 'domestic production promotion tax system.' As autonomous driving and AI, including the introduction of Tesla's FSD in Korea, are emerging as key factors in electric vehicle purchases, joint efforts between the public and private sectors for technology development and institutional foundation building are more important than ever."