Medium Cars - South Korea

South Korea

Revenue in the Medium Cars market is projected to reach US$5bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.05%, resulting in a projected market volume of US$5bn by 2028.
Medium Cars market unit sales are expected to reach 194.9k vehicles in 2028.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$24k.
From an international perspective it is shown that the most revenue will be generated in China (US$90,060m in 2024).

Key regions: Europe, China, India, United States, United Kingdom

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Analyst Opinion

The Medium Cars market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean customers have shown a strong preference for medium-sized cars due to their practicality and versatility. These cars offer a good balance between fuel efficiency and interior space, making them suitable for both urban and long-distance driving. Additionally, medium-sized cars often come equipped with advanced safety features and technology, which appeal to South Korean consumers who prioritize safety and convenience.

Trends in the market: One of the key trends in the South Korean Medium Cars market is the increasing demand for electric and hybrid vehicles. As the government continues to promote eco-friendly transportation and implement stricter emissions regulations, more consumers are opting for electric or hybrid medium-sized cars. This trend is further supported by the growing availability of charging infrastructure across the country. Another trend in the market is the rise of connectivity features in medium-sized cars. South Korean consumers are tech-savvy and value the integration of smartphones and other devices with their vehicles. As a result, car manufacturers are incorporating advanced infotainment systems, voice recognition, and other connected features into their medium-sized car models.

Local special circumstances: South Korea is home to several major automotive manufacturers, including Hyundai and Kia. These domestic brands have a strong presence in the medium-sized car market and are known for producing high-quality vehicles that cater to the preferences of South Korean consumers. The popularity of these brands has contributed to the overall growth of the market.

Underlying macroeconomic factors: The South Korean economy has been performing well in recent years, with steady GDP growth and low unemployment rates. This has led to increased consumer confidence and disposable income, allowing more individuals to afford medium-sized cars. Additionally, favorable financing options and government incentives for purchasing eco-friendly vehicles have further stimulated the market. In conclusion, the Medium Cars market in South Korea is experiencing growth due to customer preferences for practical and versatile vehicles, the increasing demand for electric and hybrid cars, the integration of connectivity features, the strong presence of domestic automotive manufacturers, and the overall positive macroeconomic conditions.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).