January 2026, "The Ice Age?"' Automotive market starts with double-digit month-on-month decline

*This content was translated by AI.

In January 2026, the domestic automobile market recorded a double-digit decline compared to the previous month, coupled with a contraction in consumer sentiment at the beginning of the year and a seasonal off-season. A total of 124,124 new cars were registered in the country last month, down 14.2 percent from the previous month when 144,689 vehicles were registered, according to new car registration data released on the 5th. However, it remained flat, slightly increasing 0.4% compared to the same period last year (123,635 units).

By fuel, the strength of hybrid cars and the sharp decline in electric vehicles were sharply divided. While gasoline vehicles still accounted for a majority of 63,489 units, or 51.1 percent of the total, hybrid vehicles grew 17.0 percent year-on-year to 38,531 units, boosting their market share to 31.0 percent. On the other hand, only 5,733 electric vehicles were registered last month, plunging 43.9% from the previous month. This is attributed to the exhaustion of subsidies and the occurrence of waiting demand before subsidies are finalized at the beginning of the year, but the figure surged 141.1% year-on-year, indicating that the overall electric vehicle transition trend continues. Diesel cars' market share fell to 3.9%, making the decline more pronounced.

In the domestic car market, Kia overtook Hyundai Motor to take the top spot in the passenger sector. Kia registered 41,244 units in January, solidifying its market share, while Hyundai Motor sold 35,572 units and Genesis 8,349 units, respectively. In particular, Kia's performance stood out in the rankings by vehicle type. Sorento ranked first overall with 8,976 units, with major popular models such as Sportage (6,652 units), Carnival (6,064 units), and Ray (4,853 units) at the top. Hyundai's flagship Grandeur ranked second overall with 6,656 units, followed by Avante (5,638 units) and Palisades (5,138).

The imported car market showed explosive growth compared to the previous year, contrasting with domestic cars. New car registrations for imported cars increased 37.1% year-on-year to 21,401 units in January. By brand, BMW topped the list with 6,270 units, while Mercedes-Benz ranked second with 5,121 units. In particular, brands specializing in electric vehicles, such as Tesla (1,968 units) and Villadi (1,347 units), ranked third and fifth in imported car brands. In the rankings by model, the Mercedes-Benz E-Class regained the throne with 2,220 units, while BMW 5 Series (1,951) and Tesla Model Y (1,559 units) formed the top ranks.

Looking at the registration status by demographic, the number of private car registrations owned by individuals was 53,549, more than twice that of women (25,283). By age, people in their 50s accounted for the highest proportion, and people in their 40s, 60s, 30s, and 20s bought the most new cars. By vehicle class, medium-sized cars were the most popular with 31.3% of the total, followed by subcompact (23.2%) and large (14.2%). By appearance, SUVs accounted for more than half of the total passenger market with 62,289 units, proving once again to be an overwhelming trend.

In the commercial vehicle sector, Hyundai Porter 2 topped the domestic commercial vehicles with 3,894 units and Volvo FH led the market with 75 units, respectively. In the dump truck and mixer truck markets, which are construction machinery, Hyundai Motor's new power truck each ranked first, showing off its unrivaled position.

Industry sources predict that January's faltering market mood will gradually recover as subsidies start in earnest from February and new cars continue to be released. In particular, the possibility of reorganizing the market centered on small electric vehicles is expected as imported brands such as BYD and domestic brands are intensifying their defense war.

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*This content was translated by AI.