This photo provided by Tesla Inc, shows the carmaker’s service center in western Seoul.
SEOUL, Oct. 27 (Korea Bizwire) — South Korea’s three mid-sized automakers are losing ground so rapidly in their home market that they now lag behind Tesla, a relative newcomer that entered the country less than a decade ago.
According to data from Kaizuyu Data Research Institute released Sunday, Renault Korea sold 40,431 vehicles in the domestic market during the first three quarters of 2025, followed by KG Mobility with 29,969 and GM Korea with 12,064. Combined, the three companies sold 82,464 vehicles — putting them on track to barely reach 100,000 units for the year.
That would mark their weakest annual performance ever, falling below last year’s total of 109,101.
By comparison, BMW sold 57,840 vehicles in the same period, Mercedes-Benz 48,248, and Tesla 43,637. The fact that a single-model-driven EV brand has surpassed Korean-based manufacturers in their own market has alarmed industry officials.
A Mercedes-Benz dealership in Seoul (Image courtesy of Yonhap)
“It is extremely concerning that companies producing cars in Korea are being outpaced by Tesla, which relies primarily on one model, the Model Y,” one automotive executive said.
Domestic sales by the three manufacturers — Renault Korea, KG Mobility (formerly SsangYong Motor), and GM Korea — have fallen every year since 2020. Their market share has dropped from 15.6 percent in 2020 to just 7.6 percent last year.
Over that same period, Hyundai Motor Group strengthened its dominance, rising above 74 percent, while foreign brands expanded to more than 18 percent.
Analysts blame a chronic lack of new models. With fewer fresh offerings, each launch has an outsized impact on sales performance. Renault Korea’s recent rebound, driven by its new Grand Koleos, illustrates the pattern.
This photo taken on March 10, 2023, shows a BMW dealership in Seongsu, eastern Seoul. (Image courtesy of Yonhap)
Experts warn that the erosion of competition threatens the broader auto ecosystem, including parts suppliers.
“Like Japan, Korea needs a healthy mix of competing automakers to sustain its industry,” said another industry official. “With U.S. tariffs weighing on exports and production shifting abroad, concerns are only growing.”
Kevin Lee (kevinlee@koreabizwire.com)
