South Korea Electric Car Market Size, Share, and COVID-19 Impact Analysis, By Type (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, Fuel Cell Electric Vehicle), By Vehicle Class (Mid-Priced, Luxury), and South Korea Electric Car Market Insights, Industry Trend, Forecasts to 2035

South Korea Electric Car Market Insights Forecasts to 2035

• The South Korea Electric Car Market Size is Expected to Grow at a CAGR of around 30.75 % from 2024 to 2035 
• The South Korea Electric Car Market Size is Expected to reach a significant share by 2035.  

 According to a research report published by Spherical Insights & Consulting, The South Korea Electric Car Market size is expected to grow 30.75% CAGR from 2024 to 2035, is expected to reach a significant share by 2035. The market is being driven by rising interest in electric vehicles as a cleaner and more sustainable mode of transportation due to growing awareness of environmental issues like air pollution and climate change.

 Market Overview

The market for electric cars in South Korea is the area of the automotive industry devoted to the creation, manufacturing, and uptake of automobiles that run entirely or mostly on electricity. These vehicles provide an alternative to conventional internal combustion engine vehicles by utilizing electric motors and energy stored in rechargeable batteries. Additionally, Technological developments, an increase in EV sales, and the expansion of EV charging stations are all contributing to the growth of the South Korean electric vehicle market. Moreover, Consumers are being encouraged to switch to electric vehicles by government programs like tax breaks, financial aid, and investments in R&D. The government provides up to 14 million won in subsidies for buying an EV, which lowers the cost of EVs and increases their appeal to buyers.

Report Coverage

This research report categorizes the market for the South Korea electric car market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea electric car market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea electric car market.

Driving Factors

The range anxiety that EVs cause has been mitigated by an expanding charging infrastructure, which has further enticed buyers to switch. A variety of electric models with enhanced features, attractive designs, and competitive pricing have also been produced as a result of the automotive industry's dedication to innovation and manufacturer competition. It is anticipated that as electric vehicles gain popularity, their cost of ownership will drop, making them an appealing option for a larger range of buyers. Essentially, a combination of growing market competition, technological advancements, supportive government policies, and environmental consciousness is driving the regional electric car market.

Restraining Factors

Even though South Korea has a highly developed electric vehicle (EV) market, there are a number of major obstacles that prevent it from expanding. These obstacles include constraints on the infrastructure, worries about safety, financial considerations, and pressures from competitors.

Market Segmentation

The South Korea electric car market share is classified into type and vehicle class.

• The battery electric segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea electric car market is segmented by type into battery electric vehicle, plug-in hybrid electric vehicle, and fuel cell electric vehicle. Among these, the battery electric segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. fueled by the nation's emphasis on environmentally friendly transportation and advances in battery technology. With more models from different automakers becoming available, the market for battery electric cars is growing quickly.

• The mid-priced segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea electric car market is segmented by vehicle class into mid-priced and luxury. Among these, the mid-priced segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The Strong consumer demand for reasonably priced, high-performing EVs, government subsidies, and the existence of well-known domestic automakers like Hyundai and Kia who concentrate on creating affordable electric vehicles for widespread use are the main drivers of this.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea electric car market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hyundai Motor Company
• Kia Corporation
• Samsung SDI
• LG Energy Solution
• SK Innovation
• Genesis
• Others

Recent Developments:

• In January 2025, The Tesla Model 3 had become South Korea's top-selling imported car, surpassing German rivals like Mercedes-Benz E300 4Matic and BMW 520, according to data from the Korea Automobile Importers and Distributors Association (KAIDA).

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea Electric Car Market based on the below-mentioned segments:

South Korea Electric Car Market, By Type

• Battery Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

South Korea Electric Car Market, By Vehicle Class

• Mid-Priced
• Luxury