Honda Motor Co said Thursday it will exit the South Korean auto market at the end of this year due to sluggish sales, more than two decades after entering the competitive market dominated by domestic brands.
The Japanese automaker will maintain its motorcycle business, an area with growth potential, by concentrating its human resources and capital on the segment.
Honda’s automobile sales in South Korea began in May 2004. At its peak in 2008, the automaker sold around 12,000 units, but sales fell to roughly 2,000 vehicles in 2025 amid competition from domestic manufacturers, including Hyundai Motor Co.
In South Korea, Honda sells four models, including the Accord sedan and the CR-V sport utility vehicle, by importing them from overseas. After-sales services, such as vehicle checks and repairs, will continue, the company said.
The second-largest Japanese automaker has been reviewing its business strategy, particularly its electric vehicle development. For the fiscal year ended March, Honda is expected to post its first net loss since its 1957 listing, partly reflecting the impact of the review.
The automaker and Sony Group Corp said Tuesday they have decided to scale down operations at their joint venture, which had planned to develop and market EVs.
Honda will also discontinue gasoline vehicle production at one of its four plants in China and may do so at another plant, according to a source close to the matter.
© KYODO
