Between 2013 and 2023, first registrations of new vehicles in South Korea showed fluctuations with a general upward trend until 2017, peaking in 2020 at 1.601 million registrations. From 2021 onwards, a decline is observed, with numbers dropping to 1.331 million in 2023, marking a critical downturn phase.
Year-on-year variations highlight significant patterns: an increase of 5.48% in 2020 followed by a drastic 11.27% decrease in 2021. The subsequent years maintained a negative trajectory, with a drop of -2.8% in 2023. The 5-year CAGR leading up to 2023 reveals an average annual decline of -2.77%.
Forecasts from 2024 to 2028 predict a continuous decline at an average CAGR of -2.41%, leading to a projected 1.1446 million registrations by 2028, translating to an 11.47% decrease over five years.
Future trends to watch for include potential market recovery driven by technological advancements in electric vehicles, changing consumer preferences, and government policies promoting sustainable transportation. Monitoring economic conditions and the automotive industry's resilience to emerging market shifts will be crucial.
