Tesla Scores Top Spot In South Korea's Imported Car Market As Model Y, Model 3 Dominate Sales

Tesla was South Korea's bestselling foreign car brand in August as registrations more than tripled from a year earlier on surging demand for its electric cars.

Sales of imported cars rose 22.6% to 27,304 vehicles from 22,263 a year ago, the Korea Automobile Importers & Distributors Association (KAIDA) said. Tesla accounted for 7,974 of those, led by the Model Y, Model Y Long Range and Model 3, which took the top three spots, according to a report by the state-owned news agency Yonhap.

The strong result came on the back of Tesla's momentum in the country. The company sold 7,357 cars in July to reclaim the top ranking after briefly slipping in June, led by the Model Y with more than 6,500 sales.

In May, Tesla topped the monthly list for the first time, with 6,570 units, nearly 58% more than in the same month a year earlier. From January to July, its sales rose 32.4% to 26,569, placing it behind BMW and Mercedes-Benz overall but firmly in the lead on EV sales.

Tesla is connecting with younger Korean buyers, helped by government subsidies that have lowered purchase prices and eased concerns over EV costs and safety.“Tesla has successfully appealed to young Korean customers with its trendy brand image,” The Korea Times reported, citing an auto industry official.

German brands continue to lead the market overall, accounting for approximately six in ten imported cars sold in August. Still, Volkswagen, BMW and Mercedes-Benz together sold 13,228 vehicles that month, down nearly 8% from a year earlier.

Lexus, meanwhile, gained ground, selling 8,963 cars in the first seven months of the year, marking a 19% jump driven largely by strong demand for its ES 300h hybrid sedan. That performance moved it past Volvo, whose sales fell 9.5%.

Imported car registrations overall in South Korea rose 13.3% in the January–August period to 192,514, underscoring how the market is shifting quickly toward electric and hybrid vehicles with Tesla and Lexus carving out stronger positions against their German rivals.

On Stocktwits, retail sentiment for Tesla was 'extremely bearish' amid 'normal' message volume.

Tesla's stock has declined 18% so far in 2025.

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