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Auto imports top 300,000 for first time led by Tesla and hybrids

Published: 06 Jan. 2026, 18:42

Tesla's Model Y [TESLA KOREA]

For the first time ever, more than 300,000 imported cars were sold in Korea last year, largely driven by a surge in Tesla sales. Chinese automaker BYD also made a strong showing, ranking in the top 10 during its first year in the market.

According to data released Tuesday by the Korea Automobile Importers & Distributors Association (Kaida), 307,377 imported passenger vehicles were newly registered last year, a 16.7 percent increase from the 263,288 units in 2024. It marks the first time since Korea opened its import car market in 1987 that annual registrations have exceeded 300,000 units.

Tesla led the charge, selling 59,916 units last year — more than double its 2024 sales of 29,750. The company’s share of the imported car market jumped from 11.3 percent to 19.5 percent, making it the No. 3 brand after BMW with 77,127 units and Mercedes-Benz with 68,467 units. Tesla’s Model Y, an electric SUV, was also the best-selling imported model last year, with 37,925 units sold.

Other top-selling brands included Volvo with 14,903 units, Lexus with 14,891, Audi with 11,001, Porsche with 10,746 and Toyota with 9,764.

BYD, which entered the Korean market in 2025, ranked 10th with 6,107 units sold — a much faster start than Tesla, which only sold about 300 units in its debut year in Korea. BYD launched its Atto 3 compact SUV in Korea, followed by the midsize electric sedan Seal and the midsize SUV Sealion 7, bringing its local lineup to three models.

BYD's Sealion 7 [BYD]

Though BYD initially struggled, it surpassed 1,000 monthly sales for the first time in September 2025 by emphasizing its price-to-performance advantage. Considering its relatively low brand recognition in Korea, the performance was seen as noteworthy. The company is expected to expand its lineup this year with budget models like the Dolphin hatchback.

By powertrain, hybrid vehicles accounted for the majority of import sales, totaling 174,218 units. They were followed by electric vehicles (EVs) with 91,253 units, gasoline models with 38,512 and diesel cars with 3,394. In terms of on-year growth, EVs saw the sharpest increase at 84.4 percent. Gasoline and diesel vehicles declined by 38.5 percent and 54.9 percent, respectively.

The rising popularity of imported cars is adding pressure to domestic automakers. According to Kaida, new registrations of Korean-made passenger vehicles — including those from Hyundai Motor, Kia, GM Korea, KG Mobility and Renault Korea — rose just 2.7 percent to 1,206,136 units, up from 1,174,560 in 2025. That growth is far below the 16.7 percent rate shown by imported vehicles. As a result, the share of imports in the overall passenger vehicle market rose from 18.3 percent in 2024 to 20.3 percent last year, dropping the domestic share from 81.7 percent to 79.7 percent.

Korean automakers are now focused not only on exports but also on defending their market share at home. Hyundai Motor replaced both the head of its Genesis luxury brand and the chief of domestic operations in a year-end executive reshuffle aimed at strengthening local sales. Renault Korea is also expected to boost its domestic lineup with the launch of the Filante, a new model emphasizing hybrid and electric powertrains.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]