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Domestic sales by South Korea’s five main automakers combined fell by 15% to 95,638 units in February 2026 from 112,258 units a year earlier, according to preliminary wholesale data released individually by the main local manufacturers. The data do not include sales by South Korea’s low-volume commercial vehicle manufacturers, including Tata-Daewoo and Edison Motors, while import brands are covered in a separate report later in the month.
With the prolonged Lunar New Year holidays this year falling in February, the market last month was affected by fewer working days compared with last year. The overall market remains sluggish, however, with sales in the first two months of the year falling by 3.5% to 195,798 units from 202,845 units a year earlier.
The economy contracted by 0.3% quarter-on-quarter in the fourth quarter of 2025, reversing a 1.3% expansion in the third quarter, reflecting weaker investment and exports, while domestic consumption was supported by recent interest rate cuts by the central bank, from 3.5% to 2.5%. The South Korean economy expanded by just under 1% last year, down from 2% in 2024, reflecting weak consumer and corporate sentiment.
Hyundai reported an almost 6% decline in domestic sales to 97,216 units in the first two months of 2026, down from 103,270 units a year earlier, while Kia’s deliveries were slightly higher at 85,109 units. GM Korea was the worst performer, with sales plunging by almost 38% to 1,692 units, followed by Renault Korea with a 36% drop to 4,239 units, while KG Mobility saw its sales surge by 38% to 6,887 units, helped by the launch of the battery-powered Musso pickup truck.
Global sales by the country’s “big-five” automakers, including vehicles produced overseas, declined slightly to 1,214,211 units year-to-date from 1,225,822 units a year earlier, while overseas sales were also slightly lower at 1,018,413 units from 1,027,393 units.
Hyundai Motor’s global sales fell by 5% to 306,528 units in February from 322,852 units in the same month of last year, reflecting a sharp drop in domestic deliveries and a more moderate decline in overseas sales. Global sales in the first two months of the year fell by 3% to 615,088 units from 633,814 units in the same period last year.
Domestic sales fell by 18% to 47,008 vehicles in February from 57,216 a year earlier, reflecting in part the timing of this year’s Lunar New Year holidays, after volumes rose by 9% to 50,208 units in January. Domestic sales in the first two months of the year were down by almost 6% to 97,216 units from 103,270 units a year earlier.
Overseas sales declined by 2.3% to 259,520 units last month from 265,636 units a year earlier, despite strong sales in key markets such as India and the US. Overseas sales in the first two months of the year were 2.4% lower at 517,872 units from 530,544 units previously.
Hyundai said in January that it is targeting a slight increase in global sales to 4.158 million units in 2026, including its Genesis luxury brand, with domestic sales expected to reach 700,000 units and 3.46 million units overseas. Sales in North America are forecast to increase slightly to 1,231,000 units, while sales in Europe are expected to be flat at 601,000 units; India 592,000 units (+3%), South Korea 700,000 units (-2%), and South America 328,000 units (+0.1%). The company is looking for continued product mix improvement and new model launches this year to help offset rising competition, economic uncertainty and US import tariffs.
Kia reported a 2.8% fall in global sales to 247,401 vehicles in February, down from 254,415 a year earlier, reflecting a sharp drop in domestic sales and a more moderate decline in overseas sales. Global sales in the first two months of the year were slightly lower at 493,092 units from 494,293 units, led by the Sportage SUV with 43,281 units, followed by the Seltos with 22,875 sales and the K4 with 18,434 units.
Domestic sales declined by almost 9% to 42,002 units last month from 46,003 units a year earlier, which the automaker blamed on the timing of this year’s Lunar New Year holidays. The Sorento was its best-selling domestic model during the month with 7,693 deliveries, followed by the PV5 with 3,967 units and the Sportage SUV with 3,800 units. In the first two months of the year, domestic sales were slightly higher at 85,109 units from 84,406 units last year. The automaker also reported a 17% rise in sales of special purpose vehicles (SPVs) in this period to 655 units, from 560 units a year earlier, most of which were military vehicles sold domestically.
Overseas sales fell by 1.5% to 205,005 units in February from 208,027 units a year earlier, led by the Sportage with 43,281 sales, followed by the Seltos SUV with 22,875 units and the K4 with 18,434 units. In the first two months of the year, overseas sales were down slightly at 407,328 units from 409,327 units.
Earlier this year, Kia said it is targeting an almost 7% increase in global sales to 3,350,000 units in 2026, including 565,000 domestic sales and 2,775,000 overseas, along with 10,000 global SPV sales. This includes 915,000 deliveries in the US, 594,000 units in Europe, and 302,000 units in India. The company said it plans to continue to expand its hybrid lineup to include the new Telluride and Seltos SUV models in the US, the new EV2 BEV models in Europe, and the all-new Seltos in India.
GM Korea’s global sales fell by 7.6% to 36,630 units in February from 39,655 units a year earlier, reflecting falling domestic and export sales. Global sales in the first two months of 2026 increased by 14% to 81,333 units from 71,273 units previously, following a sharp increase in January. The locally produced Trax crossover vehicle and the Trailblazer SUV are by far the company’s best-selling models, with most output shipped overseas.
Domestic sales plunged by 37% to 927 units in February from 1,482 units a year earlier, while year-to-date domestic volumes were down by almost 38% to 1,692 units from 2,711 units, as the automaker struggled with rising competition from other domestic manufacturers and from importers. The company recently launched the battery-powered Escalade IQ premium SUV, which it imports from the US along with the Colorado pickup truck and the GMC Sierra Denali.
Exports fell by 6.5% to 35,703 units last month from 38,173 units, while overseas shipments in the first two months of the year increased by 16% to 79,641 units from 68,562 units previously.
GM Korea has pledged to invest US$ 300 million to upgrade its local manufacturing operations for the production of next-generation models. The company has set a target of producing 500,000 vehicles in 2026, up from 462,310 units in 2025, mainly to meet growing overseas demand, particularly in the US,
KG Mobility (KGM) reported a 2.8% decline in global sales to 8,237 units in February from 8,456 units a year earlier, with a sharp decline in exports mostly offset by stronger domestic sales. Global sales in the first two months of the year increased by 3.3% to 17,073 units from 16,526 units previously.
Domestic sales jumped by 38% to 3,701 units in February from 2,676 units a year earlier, helped by the recent launch of the Musso Pickup EV, while year-to-date deliveries also increased by 38% to 6,887 from 4,976 units. Exports of built-up and knocked-down vehicles fell by 23% to 4,356 units last month from 5,630 units a year earlier, resulting in an 11% drop to 10,186 units year-to-date from 11,400 units previously.
KGM said it plans to “release new and upgraded models with improved performance” in 2026 to help strengthen its domestic and overseas sales, with a focus on expanding its zero-emissions vehicle range. The company has a strategic partnership with China’s Chery Automobile Company, giving it access to readily available new energy vehicle (NEV) technologies. It recently revealed plans to introduce “at least eight” new models by 2030.
Renault Korea’s global sales plunged by 36% to 3,893 units in February from already weak year-earlier sales of 6,099 units, with declining domestic sales offset by higher exports. Global sales in the first two months of the year fell by 23% to 7,625 autos from 9,916 units previously.
Domestic sales plunged by 59% to 2,000 units in February from 4,881 units a year earlier and were down by 36% to 4,239 units year-to-date from 7,482 units, with the Grand Koleos SUV accounting for a significant proportion of these volumes. Exports rose by 55% to 1,893 units last month from 1,218 units a year earlier and were up by 39% to 3,386 units year-to-date from 2,434 units.
The company began production of its new Filante flagship SUV at its Busan plant in January, ahead of its planned local launch in March. The model, based on Chinese automaker Geely’s Compact Modular Architecture (CMA) platform, is powered by Renault’s new-generation E-Tech 250 hybrid powertrain. It will be shipped to markets in South America and the Gulf States region later this year.
“South Korea report: domestic sales fall 15% in February” was originally created and published by Just Auto, a GlobalData owned brand.
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