The electric vehicle market in South Korea experienced significant growth in 2025, with a surge in registrations of over 50% and EV penetration exceeding 10% for the first time. Data from the Korea Automobile and Mobility Industry Association revealed that the Tesla Model Y, imported from Gigafactory Shanghai, played a crucial role in driving this growth.
According to the Korea Automobile and Mobility Industry Association’s (KAMA) 2025 Korea Domestic Electric Vehicle Market Settlement report, 220,177 new electric vehicles were registered in South Korea in 2025, marking a 50.1% year-over-year increase. The penetration of EVs in the country reached 13.1%, crossing into double digits for the first time.
The Tesla Model Y emerged as a standout performer in the market, with sales of 50,397 units during the year, capturing a significant 26.6% share of South Korea’s pure electric passenger vehicle market. Sales of the Model Y, particularly the Giga Shanghai-built version, saw a remarkable 169.2% increase compared to the previous year, driven by strong demand for the all-electric crossover.
Manufacturer performance in the EV market reflected intense competition, with Kia leading with 60,609 EV sales, followed closely by Tesla at 59,893 units and Hyundai at 55,461 units. Together, these three brands accounted for nearly 80% of the total EV sales in the country, shaping a competitive three-way market landscape.
Imported EVs gained significant traction in South Korea in 2025, capturing a market share of 42.8%, while the share of domestically produced EVs declined to 57.2%. Sales of China-made EVs more than doubled year over year to 74,728 units, with Tesla’s Model Y contributing to this growth.
Elon Musk, the CEO of Tesla, commended South Korean customers for their embrace of electric vehicles. In a tweet response, Musk acknowledged that South Koreans are often ahead in appreciating new technology, reflecting the country’s enthusiasm for innovative solutions.
Overall, the electric vehicle market in South Korea witnessed remarkable growth in 2025, driven by the popularity of models like the Tesla Model Y and the increasing adoption of EVs among consumers. The market dynamics indicate a promising future for electric vehicles in the country, with both domestic and imported brands making significant strides in the industry.