South Korea Eco-Friendly Cars Cross 50% Share as Rivals Circle

South Korea Eco-Friendly Cars Cross 50% Share as Rivals Circle

Quick Reads

• Eco-friendly vehicles hit 50.4% of new car registrations in South Korea during the first half of 2026.
• Registrations totaled 429,163 units out of 851,833 new cars sold nationwide.
• EV sales alone surged 112.6% year-on-year to 198,969 units, driving most of the growth.
• Gasoline car share fell below 40% for the first time since 2016.
• Tesla, BYD, Zeekr, and Xpeng are all preparing fresh launches that could reshape the field.

South Korea’s eco-friendly cars crossed a symbolic milestone, making up over half of all new vehicle registrations in the first half of 2026.

Eco-friendly models, including EVs, hybrids, and hydrogen vehicles, reached 429,163 registrations. Consequently, they accounted for 50.4% of the 851,833 newly registered vehicles, according to industry tracker data reported by the Korea Times.

This milestone caps years of steady growth. Eco-friendly vehicles held 9.1% of registrations in 2020. That share increased to 25.5% in 2023 and 38.5% in 2025.

Meanwhile, traditional gasoline cars continued losing ground. Their share dropped to 39% in the first half, falling below 40% for the first time since 2016.

Notably, electric vehicles led the growth within the eco-friendly segment. EV registrations surged 112.6% year-on-year to 198,969 units. As a result, EVs became the only powertrain category recording growth this year.

Industry analysts credit the surge to a broader model lineup. Additionally, faster government subsidy payouts encouraged more buyers to switch.

However, competition within the eco-friendly market is also changing rapidly. Tesla overtook Hyundai in domestic EV sales for the first time. It sold 56,139 vehicles, compared with Hyundai’s 39,575 during January to June.

At the same time, Chinese automakers are increasing competition. Zeekr’s 7X secured over 1,000 pre-orders within its first month in South Korea. Meanwhile, Xpeng and BYD are expanding their hybrid and EV offerings locally.

Even so, Hyundai and Kia are strengthening their positions. Kia posted the biggest local gains, increasing its EV market share by 8.7 percentage points to 36.2%. Its growth came from a broad lineup, including compact SUVs and purpose-built vehicles.

Meanwhile, Hyundai is preparing a comeback. The company hopes the second-half launch of the Genesis GV90 SUV will reverse declining EV sales.

Looking ahead, more global automakers are preparing South Korean launches. Consequently, the country’s eco-friendly car race is expected to intensify throughout the rest of 2026.