Hyundai Casper Electric Cross
SEOUL, June 8 (Korea Bizwire) — South Korea’s compact car market, once buoyed by economic downturns, is now facing a dramatic collapse, with annual sales expected to fall below 70,000 units for the first time in over a decade.
According to data released June 8 by market tracker CarIsYou Data Research Institute, mini car registrations in May 2025 plunged 37.4% year-on-year to just 5,626 units.
Total registrations from January to May stood at 30,809 units, down 33.8% from the same period in 2024. If the trend continues, annual sales may not only fall short of the 100,000-unit mark for the second consecutive year, but may also dip below 70,000—a level not seen since the mid-2000s.
The segment saw its peak in 2012, when sales reached 216,221 units, according to the Korea Automobile & Mobility Association (KAMA). But the numbers have steadily declined, dropping to 98,781 units in 2021.
A temporary rebound followed with the launch of Hyundai’s compact SUV Casper in late 2021 and Kia’s Ray EV in 2023, pushing total sales up to 124,080 units that year. However, that momentum has not carried into 2025.
Analysts point to several factors behind the downturn. Korean consumers have increasingly gravitated toward larger, more luxurious recreational vehicles (RVs), while automakers are prioritizing mid- to large-sized models with higher margins.
The discontinuation of the Chevrolet Spark has further narrowed the mini car lineup, leaving only Kia’s Morning and Ray (including Ray EV), and Hyundai’s Casper as the remaining options.
Adding to the challenges, the new electric version of the Casper (Casper EV), with its larger body, no longer qualifies as a mini car under domestic classification standards—contributing to the shrinking segment.
Meanwhile, global rivals are taking a different tack. Japanese automaker Toyota recently introduced a hybrid version of its Aygo X, aiming to capitalize on continued demand in Europe’s mini car market.
“The local market is seeing a dual blow—declining overall vehicle demand due to economic sluggishness and a growing consumer preference for larger vehicles,” said an industry insider. “Unless a standout new model emerges, it will be difficult to reverse this trend.”
Kevin Lee (kevinlee@koreabizwire.com)
