Specifically, South Koreas total domestic EV sales in 2023 were 159,693 units, a decrease of 1,756 units compared to 161,449 units in 2022. Of these sales, domestic EVs accounted for 116,662 units, down from 123,676 units in 2022, representing 73.1% of total sales. In contrast, imported EV sales reached 43,031 units, surpassing the 40,000 mark for the first time, accounting for 26.9% of total sales. This means the market share of domestic EVs dropped by 3.5 percentage points from 76.6% in 2022, while the share of imported EVs rose by the same margin.

Analysts attribute the shift in sales shares between imported and domestic EVs to factors such as the diversification of imported models, adjustments in subsidy policies, and brand effects. In particular, the reduction in subsidies for domestic EVs, coupled with the high base effect from the previous years sales, led to a year-on-year decline in sales. Industry experts anticipate that domestic EV sales may regain growth momentum by the end of 2023 or in 2024.

These market dynamics reflect intensifying competition and changing consumer preferences in South Koreas EV market. As more international automakers enter the market with diverse EV models, consumer choices have expanded. Additionally, the impact of policy adjustments on market trends cannot be overlooked. In the coming years, South Koreas EV market is expected to continue evolving, presenting more complex dynamics.

Changes in South Koreas EV Market in 2023: Rising Sales of Imported EVs