The domestic hybrid vehicle market in South Korea has shown its first decline this year. This trend is attributed to a growing preference for electric vehicles, coupled with production disruptions at Hyundai and Kia and the aging of key models.
According to a report by Yonhap News, new registrations of hybrid vehicles in South Korea had been on a steep rise for the past decade, increasing from 22,181 units in 2013 to 438,170 units last year. However, the Korea Automobile Mobility Industry Association (KAMA) reported on October 13 that new registrations of hybrid vehicles (including mild hybrids) from January to September this year totaled 421,199 units, a 3.9% decrease compared to the same period last year. This marks the first time since 2013 that the number of new hybrid vehicle registrations has declined year-on-year.
The slowdown in the hybrid vehicle market this year appears to be influenced by a combination of demand and supply factors.
On the demand side, analysts suggest that consumer interest is shifting from hybrid vehicles to electric vehicles. In fact, new registrations of electric vehicles in South Korea from January to September this year reached 296,801 units, a staggering 74.8% increase compared to the same period last year. On the supply side, production disruptions at Hyundai and Kia, along with the aging of key models, have also played a role.
In March, a fire at a parts supplier delayed the delivery of several key models, many of which included hybrid variants. Additionally, the launch of new hybrid models from Hyundai has been concentrated in the second half of the year, leading consumers waiting for new cars to postpone their purchases. Kia has also seen a slowdown in sales due to the aging of its major hybrid models, with the exception of the Seltos.
* This article has been translated by AI.
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