Honda will stop selling cars in South Korea by the end of 2026. The company will continue after-sales services.Honda Motor Co., Ltd. will discontinue automobile sales in South Korea by the end of 2026, the company said, marking its exit from the market after more than two decades.
The company said its local arm, Honda Korea Co., Ltd., will stop selling cars but continue to provide after-sales services, including maintenance, parts supply and warranty support.
Honda said the decision was taken in view of changes in the global and South Korean automobile markets, and as part of efforts to optimise resources and strengthen long-term competitiveness.
Honda Korea began operations in 2001 and entered the automobile business in the early 2000s, selling models such as the Accord and CR-V. It was the first imported car brand to cross 10,000 annual sales in South Korea in 2008, according to a report by The Chosun Daily.
However, the Japanese car maker has struggled in recent years amid rising competition from electric vehicle makers such as BYD and Tesla. Its domestic sales fell about 22 per cent year-on-year to 1,951 units last year, the report added.
Honda said it will continue to focus on its motorcycle business in South Korea.
The move comes as the Japanese automaker undertakes a broader restructuring of its global operations. According to a Reuters report from last week, Honda is scaling back petrol vehicle production in China and reviewing capacity, as it faces increasing competition from Chinese electric vehicle makers and shifting demand trends.
