Amid Sluggish Sales, Honda Announces Exit from South Korean Auto Market by End of 2026
Honda Korea has announced it will terminate its automobile sales operations in South Korea by the end of 2026, shifting its strategic focus entirely to its highly competitive motorcycle business.
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- 📰 Published: April 23, 2026 at 18:37
- 🔍 Collected: April 23, 2026 at 19:02 (24 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 19:11 (9 min after Collected)
Central News Agency
(CNA Reporter Tai Ya-chen, Tokyo, 23rd) Lee Ji-hong, President of Honda Korea, held a press conference in Seoul today, announcing that the company will end its automobile sales operations in South Korea by the end of this year. Resources will be concentrated on the more competitive motorcycle sector.
According to reports from the Sankei Shimbun and Yonhap News Agency, Lee explained the rationale, stating that the company has been carefully reviewing its business direction considering changes in the market environment and exchange rate fluctuations. To ensure mid- to long-term competitiveness, the company believes it is necessary to adjust its business layout and focus management resources on key areas.
However, even after the termination of automobile sales, after-sales services such as maintenance, repairs, and parts supply for existing car owners will continue to be provided.
Honda Korea will continue to deepen its presence in the two-wheeler (motorcycle) market, viewing it as its core business in South Korea. In the future, the company will introduce diverse products and enhance service quality and customer experience to consolidate its market position.
Honda entered the South Korean market with its motorcycle business in 2001, established its automobile sales corporation in 2003, and began selling cars in South Korea in 2004. Sales peaked in 2008 at 12,000 vehicles annually. However, impacted by competition from local brands like Hyundai Motors, sales have continued to decline.
Currently, Honda primarily sells two car models in South Korea: the Honda Accord and the Honda CR-V. Yet, full-year sales in 2025 were only 1,951 vehicles, capturing a market share of less than 1%.
Statistics show that as of last month, Honda's cumulative automobile sales in South Korea stood at 108,600 units; in contrast, cumulative motorcycle sales reached 420,600 units, ranking first in market share in South Korea. (Editor: Chang Chih-hsuan) 1150423
(CNA Reporter Tai Ya-chen, Tokyo, 23rd) Lee Ji-hong, President of Honda Korea, held a press conference in Seoul today, announcing that the company will end its automobile sales operations in South Korea by the end of this year. Resources will be concentrated on the more competitive motorcycle sector.
According to reports from the Sankei Shimbun and Yonhap News Agency, Lee explained the rationale, stating that the company has been carefully reviewing its business direction considering changes in the market environment and exchange rate fluctuations. To ensure mid- to long-term competitiveness, the company believes it is necessary to adjust its business layout and focus management resources on key areas.
However, even after the termination of automobile sales, after-sales services such as maintenance, repairs, and parts supply for existing car owners will continue to be provided.
Honda Korea will continue to deepen its presence in the two-wheeler (motorcycle) market, viewing it as its core business in South Korea. In the future, the company will introduce diverse products and enhance service quality and customer experience to consolidate its market position.
Honda entered the South Korean market with its motorcycle business in 2001, established its automobile sales corporation in 2003, and began selling cars in South Korea in 2004. Sales peaked in 2008 at 12,000 vehicles annually. However, impacted by competition from local brands like Hyundai Motors, sales have continued to decline.
Currently, Honda primarily sells two car models in South Korea: the Honda Accord and the Honda CR-V. Yet, full-year sales in 2025 were only 1,951 vehicles, capturing a market share of less than 1%.
Statistics show that as of last month, Honda's cumulative automobile sales in South Korea stood at 108,600 units; in contrast, cumulative motorcycle sales reached 420,600 units, ranking first in market share in South Korea. (Editor: Chang Chih-hsuan) 1150423