As the center of gravity in the domestic imported car market shifts toward electric vehicles, brand standings are changing rapidly. Japanese automakers that failed to respond to electrification have been pushed back, while Chinese automakers pushing forward with electric vehicles have risen to a position where they threaten Japanese cars in the domestic market within just one year.
According to the Korea Association of Imported Automobiles (KAIDA) on the 10th, new registrations for Chinese brands in the domestic market from January to July this year totaled 14,521 units, accounting for 6.8% of the total. Japanese brands reached 16,230 units (7.5%), trailing China by only 1,709 units. Notably, the Japanese figure combines three brands—Lexus (9,293 units), Toyota (6,527 units), and Honda (410 units)—whereas the Chinese figure represents sales from BYD alone.
The pace at which the gap is narrowing is also accelerating. Last year, Japanese cars held an 8.7% share (26,606 units) of the total imported car market, while Chinese cars accounted for only 2.0% (6,107 units). The difference in combined brand sales between the two countries was 20,499 units. However, BYD sold 14,521 units over the first seven months of this year—more than double its previous year's total—reducing the gap to around 1,700 units.
On a monthly basis, the ranking has already flipped three times. Chinese cars first surpassed Japanese cars in April and maintained their lead in June and last month. Last month, Chinese cars accounted for 2,846 units (9.2% of the total), narrowly edging out Japanese cars (2,825 units; 9.1%) by just 21 units. Based on nationality by brand, this places China third after Europe (47.9%) and the United States (33.8%).
The dividing line was electric vehicles. New registrations of imported electric vehicles from January to July this year totaled 99,218 units, a 132.8% increase compared to the same period last year. This means that more than four out of every ten imported cars were electric. While Chinese automakers entered this market, Japanese automakers failed to join in.
Japanese car market share rose to 9.9% in 2024 but fell for two consecutive years to 8.7% last year and 7.5% from January to July this year. Toyota and Lexus, which have PHEV lineups, saw increases of 23.6% and 3.7%, respectively, but Honda, which is ending its domestic car sales business by the end of this year, plummeted by 68.4%. This marks the third withdrawal of a Japanese brand from the domestic market following Nissan and Infiniti in 2020.
In contrast, Chinese automakers are expanding their presence. ZEEKR Korea began pre-orders for its mid-size electric SUV (multi-purpose sports vehicle) '7X' last June and will begin deliveries this month. Xpeng Motor Korea, the Korean subsidiary of Xiaopeng, has also recently launched a nationwide recruitment drive to oversee its domestic operations. Once Honda exits at year-end, there will be three Chinese brands and two Japanese brands in the market.
in INDUSTRY
