South Korea New Vehicle Sales Fall 14.2% in May as Hyundai and Kia Lead Market

South Korea’s new vehicle market experienced a notable slowdown in May 2026, with combined domestic sales from five major automakers falling 14.2% year-over-year to 97,096 units. Weak consumer demand across the market contributed to lower sales volumes for most manufacturers. In addition, production disruptions linked to parts supply issues at Hyundai Motor further affected overall industry performance, leading to a double-digit decline in total domestic vehicle sales compared with the same period last year.

Domestic Sales Performance of Korean Automakers in May 2026

Market leadership remained firmly with Hyundai Motor and Kia, which together accounted for more than 92% of total domestic sales. Hyundai sold 45,364 vehicles during the month, securing a 46.7% market share despite a 23.1% year-over-year decline. Kia recorded sales of 44,713 units, representing a 46.1% share and a modest 0.6% decrease from the previous year. Other manufacturers also faced challenges, reflecting continued softness in the domestic automotive market.

Domestic Sales by Automaker

The following table summarizes domestic vehicle sales and market share among the five Korean automakers during May 2026.

Domestic Vehicle Sales and Market Share in May 2026

Overseas Sales Performance

Overseas sales results varied among manufacturers. Kia was the only major automaker to post growth, increasing overseas deliveries by 3.4% year-over-year. Meanwhile, Hyundai reported a 4.6% decline, GM Korea fell 4.8%, KGM decreased 12.1%, and Renault Korea experienced the sharpest drop at 46.6%. Combined overseas sales for the five automakers reached 567,053 units, representing a 2.0% decline compared with May 2025.

Global Sales Results in May 2026

Global sales performance also reflected mixed conditions across international markets. Hyundai delivered 325,473 vehicles worldwide, down 7.7% year-over-year, while Kia increased global sales by 2.7% to 277,494 units. GM Korea recorded 47,081 units, down 5.9%, KGM sold 8,188 units, down 10.0%, and Renault Korea posted 5,913 units, a decline of 40.0%. Collectively, the five manufacturers achieved global sales of 664,149 units, representing a 4.0% reduction from the previous year.

Global Sales Performance in May 2026

The table below highlights global sales volumes and year-over-year performance for each automaker.

Global Vehicle Sales by Automaker in May 2026

January–May 2026 Global Sales Trend

Looking at cumulative performance for the first five months of 2026, Hyundai recorded global sales of 1,627,623 units, down 4.7% year-over-year. Kia achieved growth of 1.3%, reaching 1,332,931 units. GM Korea posted the strongest increase among the group with an 11.4% rise to 227,389 units. KGM expanded sales by 1.7% to 44,777 units, while Renault Korea continued to face challenges, reporting a 25.3% decline to 28,733 units during the January–May period.

Best-Selling Vehicle Models in May

Among individual vehicle models, Kia’s Sorento emerged as the top-selling model in the domestic market with 7,836 units sold. Hyundai’s Grandeur secured second position with 5,183 units, while Kia’s Sportage ranked third at 4,760 units. The strong performance of SUVs and established passenger vehicle nameplates continued to influence purchasing trends despite broader market weakness across South Korea.

Frequently Asked Questions

Why did South Korea's new vehicle sales decline in May 2026?
South Korea's new vehicle sales fell primarily because of weak domestic demand and production disruptions affecting Hyundai Motor. The combination of softer consumer purchasing activity and supply-related manufacturing constraints reduced overall market volume. Domestic sales across the five major Korean automakers declined 14.2% year-over-year to 97,096 units. Most manufacturers reported lower sales compared with the same month in 2025, contributing to the significant market contraction recorded during May.

Which automakers led the South Korean market in May 2026?
Hyundai Motor and Kia remained the dominant players in the South Korean automotive market during May 2026. Hyundai sold 45,364 vehicles and held a 46.7% market share, while Kia delivered 44,713 units and captured 46.1% of the market. Together, the two companies accounted for more than 92% of total domestic vehicle sales. Their strong positions helped maintain market leadership despite broader industry challenges and declining overall demand.

What were the best-selling vehicle models in South Korea during May 2026?
The Kia Sorento was the highest-selling vehicle model in South Korea during May 2026. The mid-size SUV achieved sales of 7,836 units, making it the market leader for the month. Hyundai's Grandeur sedan ranked second with 5,183 units sold, while the Kia Sportage compact SUV secured third place with 4,760 units. These results demonstrate continued consumer preference for popular SUV models and established passenger vehicles in the domestic market.