Seoul: South Korea's domestic market for automobiles posted its weakest performance in over a decade last year on reduced demand among self-employed individuals and young adults, an industry report said Thursday. In its annual automotive market analysis, the Korea Automobile Manufacturers Association (KAMA) reported that new car sales totaled 1.64 million units in 2024, down 6.5 percent from the previous year, marking the lowest tally since 2013.
According to Yonhap News Agency, sales of domestically produced vehicles fell 7.3 percent to 1.35 million units, while imported car sales dropped 2.5 percent to 288,000 units. Despite declining sales volume, the average purchase price of new cars rose 2.3 percent on-year to 50.5 million won (US$35,162), reflecting a shift toward higher-priced vehicles.
The KAMA identified rising household debt, the expiration of government support programs for new car purchases, and a slowdown in demand for electric vehicles as key factors behind the slump. In particular, demand from self-employed individuals and young consumers was significantly constrained due to the high financial burden of new car purchases, the association said.
The KAMA urged the government to take proactive measures to stimulate demand. "We need to maintain the temporary individual consumption tax reduction for the entire year and expedite tax cuts for replacing old vehicles," KAMA President Kang Nam-hoon said.