South Korea Luxury Car Market Size, Share, and COVID-19 Impact Analysis, By Type (Hatchback, Sedan, Sports Utility Vehicle), By Fuel Type (Gasoline, Diesel, Electric), and South Korea Luxury Car Market Insights, Industry Trend, Forecasts to 2035

South Korea Luxury Car Market Insights Forecasts to 2035

• The South Korea Luxury Car Market Size was estimated at USD 8717.5 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.16% from 2025 to 2035
• The South Korea Luxury Car Market Size is Expected to Reach USD 16820.3 Million by 2035

According to a research report published by Spherical Insights & Consulting, the South Korea Luxury Car Market is anticipated to reach USD 16820.3 million by 2035, growing at a CAGR of 6.16% from 2025 to 2035. Growing customer needs for cleaner characteristics, i.e., electric or hybrid technology, which will command a larger group of customers, are leading to the trend.

Market Overview

The South Korea luxury car market is characterized by premium cars that provide latest technology, superior build quality, and top-class comfort. The cars are made to deliver performance, prestige, and exclusivity, and they come with powerful engines, advanced safety features, and lavish interiors. Additionally, A luxury vehicle represents car extravagance, combining state-of-the-art technology, precise craftsmanship, and ultimate comfort to deliver a luxurious driving experience. Luxury vehicles are known for their high performance, luxurious interiors, and innovative design and are preferred by those who desire refinement and have refined tastes. Luxury vehicles tend to feature high-performance engines, sophisticated safety features, and cutting-edge entertainment systems, reflecting the best of automotive engineering. The finishes employed in their manufacture, ranging from top-grade leather upholstery to rare wood trimmings, demonstrate an uncompromising devotion to refinement and sophistication. Further, the rising demand for luxury and advanced automotive technology is the main reason for South Korea's booming luxury car market.

Report Coverage

This research report categorizes the market for the South Korea luxury car market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea luxury 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 luxury car market.

Driving Factors

The addition of innovative technologies like advanced driver assistance systems (ADAS), autonomous driving, and connected car functions increases the attraction of luxury cars. Customers increasingly appreciate the convenience, safety, and personalized experience provided by these technologies. Moreover, the initiatives of the South Korean government to induce environmentally friendly transportation and curb carbon emissions have seen the establishment of policies to increase the use of electric and hydrogen fuel cell vehicles. The efforts have boosted the uptake and use of clean energy vehicles and influenced positively the luxury car market.

Restraining Factors

The South Korea luxury car market is confronted with restraints that include economic slowing down, high cost of ownership, regulatory shifts such as conspicuous corporate plates, and changing consumer preferences for environmental-friendly and technologically advanced cars.

Market Segmentation

The South Korea luxury car market share is classified into type, fuel type.

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

The South Korea luxury car market is segmented by type into hatchback, sedan, and sports utility vehicle. Among these, the sports utility vehicle segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The demand for SUVs has been driven by factors including increased leisure activities, the desire for more spacious vehicles, and the ability of SUVs to provide versatility for different lifestyles.

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

The South Korea luxury car market is segmented by fuel type into gasoline, diesel, and electric. Among these, the electric segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The market for high-end EVs has seen a boost through government incentives, ecological interests, and technological improvements in battery. Major names such as Mercedes-Benz, BMW, and Genesis are increasing their portfolios of electric luxury vehicles to cater to ever-rising consumer demands.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea luxury 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

• Genesis Motor
• Kia Corporation
• KG Mobility 
• BMW Group Korea
• Mercedes-Benz Korea
• Audi Volkswagen Korea
• Others

Recent Developments

• In April 2025, 81% of South Korea's imported vehicle sales had been eco-friendly vehicles, such as hybrids and EVs. BMW had led the market, followed by Mercedes-Benz.

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 luxury car market based on the below-mentioned segments:

South Korea Luxury Car Market, by Type

• Hatchback
• Sedan
• Sports Utility Vehicle

South Korea Luxury Car Market, by Fuel Type

• Gasoline
• Diesel
• Electric