Domestic Car Sales Surpass 1.9 Million Units for the First Time in History

Korea Automobile Manufacturers Association Announces 2020 New Vehicle Registration Analysis Report
Korea's Domestic Automobile Market Rises from 12th to 9th Globally

[Asia Economy Reporter Changhwan Lee] Last year, domestic car sales in South Korea surpassed 1.9 million units for the first time in history.

According to the Korea Automobile Manufacturers Association on the 4th, new car registrations in South Korea in 2020 increased by 6.2% compared to the previous year, reaching 1,905,972 units.

While the global automobile market contracted due to COVID-19, the domestic car market actually grew, with the size of the domestic automobile market rising from 12th place worldwide in 2019 to 9th place last year.

The association cited premiumization as a key characteristic of last year’s automobile market. Domestic car sales in terms of value increased by 15.9%, from 59 trillion won in 2019 to 68 trillion won in 2020, and the average selling price per vehicle also rose by 9.2% compared to the previous year, indicating a continued trend toward higher-end demand for automobiles.

Imported car sales surpassed 300,000 units for the first time ever, increasing market share from 15.3% in 2019 to 15.9% in 2020. With sales growth centered on German luxury brands, the market share by sales value reached 28.1%.

A significant increase in sales of electric-powered vehicles (HEV, EV, FCEV) was another major feature. Last year, electric-powered vehicles, supported by strong sales of hybrid cars and electric commercial vehicles, sold 225,000 units, surpassing a 10% market share.

In particular, hybrid vehicles showed the highest growth rate (66.5%) among all power sources, with 173,000 units sold, exceeding LPG vehicle sales. Hydrogen fuel cell vehicles sold 5,841 units, pushing the cumulative supply past 10,000 units as of 2020.

By purchaser type, individual demand increased by 9.2%, driven by purchases across all age groups including those in their 20s and 30s.

Jung Manki, Chairman of the Korea Automobile Manufacturers Association, said, "Recording the highest domestic sales ever under the worst conditions caused by COVID-19 in 2020 is especially encouraging in terms of maintaining the automobile industry ecosystem." He added, "However, since domestic demand contraction is a concern this year, government support is urgently needed to help the industry overcome difficulties through expanding R&D for eco-friendliness, premiumization, and electrification, as well as enhancing labor flexibility by flexibly operating the 52-hour workweek system."

This content was produced with the assistance of AI translation services.