Eco-friendly cars outsell gas, diesel vehicles for first time in May

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Eco-friendly cars outsell gas, diesel vehicles for first time in May

Published: 17 Jun. 2025, 16:39 Updated: 17 Jun. 2025, 19:07

Audio report: written by reporters, read by AI

Tesla's Model Y Juniper [TESLA]

Monthly sales of eco-friendly cars in Korea have surpassed those of petrol and diesel engine vehicles for the first time, marking a historic turning point in the country’s auto market.

According to data released Tuesday by the Ministry of Trade, Industry and Energy, 73,511 eco-friendly vehicles — including hybrid, electric and plug-in hybrid models — were sold in Korea in May, accounting for 51.8 percent of total domestic sales. Petrol engine vehicles made up the remaining 48.2 percent, or 68,354 units.

The eco-friendly segment posted a 39 percent year-on-year increase, driven by surging demand across all categories. Hybrids led with 50,614 units sold, up 31.4 percent from a year ago. EV sales soared 60.3 percent to 21,445 units, while plug-in hybrids more than doubled with a 115.9 percent jump to 1,360 units.

U.S. EV maker Tesla was a major contributor to this trend. It sold 6,570 cars in Korea last month, a 57.7 percent increase from 4,165 a year ago, making it the third-largest seller after Hyundai at 58,967 cars sold and Kia at 45,125 sold.

Tesla's sales were largely driven by the newly launched Model Y Juniper, which sold 6,237 units. Though a partial update, the model was widely considered to have undergone a near-full redesign.

Eco-friendly vehicles are displayed at a Hyundai Motor showroom in Goyang, Gyeonggi, on Jan. 6. [YONHAP]

“The surge in EV sales was largely driven by the new Tesla Model Y, regulatory reforms and early distribution of subsidies,” a Trade Ministry official said. “This suggests that public skepticism around EVs and the so-called demand ‘chasm’ in the market have eased.”

China’s BYD also posted a strong performance, selling 513 Atto 3 units in May, following 543 in April when deliveries first began in Korea.

Despite steady domestic demand, exports declined. Korea’s auto exports in May stood at $6.2 billion, down 4.4 percent from $6.49 billion a year earlier.

Hybrid cars are seen in an eco-friendly parking area in a garage in Seoul on Feb. 25. [YONHAP]

The decline was largely due to a drop in shipments to the United States, following a 25 percent tariff hike. Exports to the United States fell 27.1 percent on year to $2.52 billion in May, compared to $3.45 billion in the same month last year. Cumulatively from January to May, U.S.-bound exports dropped 16.6 percent to $13.18 billion from $15.79 billion.

“Exports to the United States decreased due to the base effect of last year’s strong performance and the full-scale impact of tariffs,” said a ministry official, “There was also the effect of Hyundai Motor Company’s new Georgia plant starting full-scale operations.”

However, strong growth in other regions offset the U.S. losses. Exports to the European Union surged 28.9 percent to $840 million, while shipments to Asia and Latin America jumped 45.1 percent and 42.3 percent, respectively.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM WON [[email protected]]