Honda has announced its complete withdrawal from the South Korean car market, ceasing new car sales from December 2024. The Japanese automaker will continue its دليل motorcycle and power products business in the country, according to a report by RideApart.
Honda Motor Co. has announced its full exit from the South Korean automotive market, stopping sales of new cars effective December 2024. The decision follows intense competition from local giants Hyundai and Kia, which dominate the market with overwhelming market share.
Why is Honda leaving South Korea?
South Korea is a tough market for foreign car brands. Hyundai and Kia control over 80% of sales, backed by strong local loyalty and advanced after-sales services. Honda, which sold only about 500 cars annually in recent years, found it difficult to achieve profitability.
What happens to existing car owners?
Honda will continue to support vehicles already sold through a specialized dealer network, providing spare parts and maintenance. Existing warranties remain valid. However, no new cars will be imported for sale.
Motorcycles: A thriving business
Unlike cars, Honda’s motorcycle segment in South Korea will not only continue but thrive. Honda is the second-largest motorcycle brand in the country after Kia Motors in this segment, enjoying strong popularity among enthusiasts. The decision underscores Honda’s focus on profitable activities.
When does the withdrawal take effect?
The withdrawal is effective from December 2024. Current dealers will transition to service centers only, while Honda’s main showroom in Seoul will close.
Is there any impact on Gulf markets?
No. Honda remains strong in Gulf markets such as Saudi Arabia and the UAE, offering models like Accord, HR-V, and Civic. The decision is specific to South Korea only.
Frequently Asked Questions
Will Honda stop selling cars in Saudi Arabia too?
No, the decision is limited to South Korea only. Honda continues strongly in Saudi Arabia and the Gulf region.
What about spare parts for cars already sold in Korea?
Honda will continue to provide spare parts and maintenance through a specialized dealer network.
Will Honda continue selling motorcycles in Korea?
Yes, the motorcycle segment will remain active and even thrive, with Honda being the second-largest motorcycle brand in Korea.
Sources
- RideApart — Honda Chooses Motorcycles Over Cars In South Korea, Stops Selling Automobiles Completely
