Passenger Cars - South Korea

South Korea

Revenue in the Passenger Cars market is projected to reach US$41.7bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.56%, resulting in a projected market volume of US$40.8bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$16.6bn in 2024.
Passenger Cars market unit sales are expected to reach 1,499.00k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$27.10k in 2024.
With a vehicle unit sales share of 19.1% in 2024, Ford is expected to have one of the highest market share in the selected region.
The value market share of the make Ford in the selected region is expected to stand at 24.9% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

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

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Analyst Opinion

The Passenger Cars market in South Korea has been experiencing steady growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: South Korean customers have traditionally shown a strong preference for fuel-efficient and compact cars. This is due to the country's high population density and limited parking space, which makes smaller cars more practical and economical. Additionally, South Korean customers value reliability, safety features, and advanced technology in their cars. As a result, automakers that offer fuel-efficient and technologically advanced vehicles have been able to gain a competitive edge in the market.

Trends in the market: One of the key trends in the South Korean Passenger Cars market is the increasing demand for electric vehicles (EVs). The government has been actively promoting the adoption of EVs through various incentives and subsidies, including tax breaks and charging infrastructure development. This has led to a surge in the sales of EVs in recent years. Additionally, there is a growing interest in autonomous driving technology, with several automakers and tech companies investing in research and development in this area. Another trend in the market is the rise of online car sales. South Korean consumers are increasingly turning to online platforms to research and purchase cars, as it offers convenience and a wider range of options. This trend has been further accelerated by the COVID-19 pandemic, which has led to a shift towards digital channels for various consumer purchases.

Local special circumstances: South Korea has a highly competitive automotive industry, with both domestic and foreign automakers vying for market share. Domestic brands such as Hyundai and Kia have a strong presence in the market and enjoy a loyal customer base. These brands have been able to cater to the specific needs and preferences of South Korean customers, which has contributed to their success.

Underlying macroeconomic factors: The South Korean economy has been relatively stable in recent years, with steady GDP growth and low unemployment rates. This has provided a favorable environment for the Passenger Cars market to thrive. Additionally, the government's focus on promoting innovation and technological advancement has attracted investments from automakers and facilitated the development of new technologies in the automotive sector. In conclusion, the Passenger Cars market in South Korea is driven by customer preferences for fuel-efficient and technologically advanced vehicles, as well as the increasing demand for electric vehicles and online car sales. The competitive nature of the market, stable macroeconomic conditions, and government support for innovation have further contributed to the growth of the market.

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).