This file photo, provided by Kia on Dec. 7, 2023, shows the company’s EV9 model. (Image courtesy of Yonhap)
SEOUL, Sept. 26 (Korea Bizwire) – As the global electric vehicle (EV) market navigates through a period of slowing demand, a clear divergence in consumer preferences is emerging between South Korea’s domestic market and its export destinations.
According to data from the Korea Automobile & Mobility Association (KAMA), small electric vehicles are gaining traction domestically, while larger models are finding favor in overseas markets.
This polarization reflects not only regional characteristics but also automakers’ tailored strategies to overcome the dip in demand for EVs.
In the first eight months of this year, sales of large EVs in the domestic market (excluding imports) plummeted by 70.3% compared to the same period last year, with only 2,477 units sold. These models include offerings from luxury brand Genesis and Kia’s EV9.
Conversely, smaller EVs saw a dramatic 130.4% increase in domestic sales, jumping from 8,293 units to 19,103 units year-over-year. Popular models in this category include Hyundai’s Ioniq, Kona, and Casper EVs, as well as Kia’s Soul EV and Niro EV.
This photo provided by Hyundai Motor shows the company’s new Casper Electric mini SUV. (Image courtesy of Yonhap)
The export market tells a different story. Large EV exports more than doubled, increasing by 128.9% to 23,078 units. Meanwhile, exports of smaller EVs nearly halved, dropping 46.7% to 38,014 units.
Industry experts attribute this dichotomy to regional preferences and infrastructure readiness.
“In Korea, price-competitive smaller EVs are attracting more customers, considering the current drop in EV demand and charging infrastructure,” said Kim Pilsoo, a professor at Daelim University.
“However, in markets like the U.S., where larger vehicles have traditionally been popular, this preference extends to EVs as well.”
The trend is further amplified by the strategic approach of South Korean automakers. Companies like Hyundai and Kia are focusing on mid-to-small sized models for the domestic market while pushing larger models in overseas markets, particularly in the United States.
Kevin Lee (kevinlee@koreabizwire.com)
