TLDRs;
- EVs made up 18.4% of South Korea’s car sales in August, marking a record monthly share.
- Hyundai and Kia are leading the domestic EV boom while pushing affordable new models into Europe.
- Cumulative EV sales in South Korea are projected to surpass 200,000 units in 2025.
- Europe’s shift toward compact, budget EVs is reshaping Hyundai and Kia’s global strategy.
South Korea’s auto market reached a milestone in August, as electric vehicles (EVs) claimed their largest-ever share of new car sales.
Data from industry tracker Carisyou shows that EVs represented 18.4% of all new registrations, a sharp increase from earlier months this year and a clear signal that the country’s electrification drive is gaining momentum.
Out of 126,787 vehicles registered last month, 23,269 were fully electric models. The latest surge pushed EVs’ share for the January-to-August period to 12.7%, up from just 2.4% in 2020 and 9.8% in 2022. This rebound marks a break from the slowdown seen in 2023 and early 2024.
Industry observers attribute the spike largely to the rollout of new models from Hyundai Motor, Kia, Mercedes-Benz, and BMW. Collectively, these launches have reignited consumer demand, with domestic leaders Hyundai and Kia capturing the bulk of sales.
EVs Gain Ground in South Korea
South Korea’s EV adoption has been accelerating over the last five years, but August stands out as a turning point. If momentum holds, cumulative EV sales in 2025 are expected to exceed 200,000 units for the first time.
Between January and August alone, 141,986 EVs were registered. Analysts believe that government incentives, expanded charging infrastructure, and falling battery costs have all combined to make EVs more attractive to mainstream buyers.
Hyundai and Kia, in particular, have played a decisive role. Their localized manufacturing, aggressive pricing strategies, and familiarity with consumer preferences have given them an edge over European and U.S. competitors.
Hyundai and Kia’s Global Ambitions
While strengthening their home market, Hyundai and Kia are also expanding aggressively into Europe, one of the fastest-growing EV markets worldwide.
Hyundai is preparing to debut a small electric SUV concept, expected to be branded as the Ioniq 2 or Ioniq 3, at the IAA Mobility 2025 event in Munich. Production is slated for early 2026, targeting European customers who are increasingly opting for compact, affordable EVs.
Kia has already begun production of the EV4 hatchback in Slovakia this past August, with sales across major European countries planned for October. Its next launch, the smaller EV2 SUV, is scheduled to enter production early next year, priced at under €35,000 ($40,590).
Europe Becomes Strategic Battleground
Data from the first half of 2025 shows 25% growth in European EV sales, led by budget-friendly compact models. Korean brands are capitalizing on this shift, with Kia’s EV3 and Hyundai’s Casper Electric seeing strong uptake.
In fact, Kia sold nearly 2.7 times more EV3s in Europe than in South Korea during the first seven months of 2025. Hyundai’s Casper Electric has also performed well, with more than half of its exports headed to European buyers.
With U.S. EV subsidies winding down and policy uncertainties clouding growth, both Hyundai and Kia are doubling down on Europe as their primary growth engine.
