Honda to End Car Sales in South Korea by End of 2026

Honda Motor Co. announced on 23 April 2024 that it will cease passenger-car sales in South Korea at the end of 2026, while keeping after-sales service and its motorcycle business.

Honda to end car sales in South Korea by end-2026, keep motorcycle business

Honda entered the market in 2004 with the Accord sedan and CR-V SUV. Hyundai Motor Co., Kia Corp., and Chinese EV makers BYD and Tesla dominate the market. Honda cited “changes in the environment surrounding the global and South Korean automobile markets” and a shutdown of a joint-venture plant with Guangzhou Automobile Group in China as reasons for the exit.

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Peak annual sales were about 12 000 units in 2008; recent years saw roughly 2 000 units, with 1 951 sold last year, a 22 % drop. Cumulative car sales total ~108 600 units, while cumulative motorcycle sales reach ~420 600 units, about 40 % of the two-wheel market.

Honda Korea to exit car sales after 23 years, keep after-sales services

Honda said the decision followed a comprehensive review and was intended to focus resources on long-term competitiveness, while pledging continued after-sales support and a focus on motorcycles.

Honda Korea to exit car sales after 23 years, keep after-sales services

• “It was decided yesterday,” Lee Ji-hong said, adding that the company “will end its automobile sales business in Korea as of the end of 2026.” — Lee Ji-hong, CEO, Honda Korea

Honda Korea to Exit Auto Sales in South Korea by Year-End, Focus on Motorcycles

• “The Japanese automaker said the decision was made after thorough consideration to concentrate corporate resources to strengthen its mid- to long-term competitiveness.” — Honda Motor Co. statement

Honda Is Pulling Out of the South Korean Car Market — And Its India Ambitions Could Feel the Ripple

• “The company expressed appreciation to customers, dealers and partners for their support, adding it will ensure minimal disruption to customers even after ending car sales.” — Honda Korea

Honda Korea to exit car sales after 23 years, keep after-sales services

• “Even after the discontinuation of automobile sales, Honda will continue to provide after-sales services, including vehicle servicing and maintenance, parts supply, and warranty support, to customers of Honda vehicles in the South Korean market.” — Honda Motor Co. statement

Honda to stop selling cars in South Korea at the end of 2026

Some reports state Honda will stop sales “by the end of this year,” implying a 2024 deadline, while most sources specify the end of 2026. Reported sales range from “under 2 000 units” to a precise 1 951 units. Details on financing the after-sales network and the timeline for expanding the motorcycle portfolio are absent.

Honda to Cease Automobile Sales in S. Korea at End of 2026

The withdrawal narrows the choice of imported passenger-car models for South Korean buyers, potentially boosting the market share of Hyundai, Kia and Chinese EV entrants. Honda will retain its motorcycle business, which holds about 40 % of the two-wheel market, and plans to broaden its product lineup. The move aligns with Honda’s broader restructuring, including plant closures in China and new EV projects in India, and will be watched for effects on its long-term competitiveness in Asia.

Honda Is Pulling Out of the South Korean Car Market — And Its India Ambitions Could Feel the Ripple