Honda is set to end its car sales operations in South Korea by the close of this year, a decision that reflects the growing challenges the Japanese automaker is facing across several key Asian markets. According to the company, shifting conditions in both the global automotive industry and the South Korean market were the main reasons behind the move.
The brand first entered South Korea in 2004, bringing familiar models such as the Accord sedan and CR-V SUV. While Honda managed to establish a presence over the years, it never became a major player in the country. South Korea has long been dominated by homegrown giants Hyundai and Kia, whose strong local loyalty and wide product range left little room for imported rivals to expand.
At the same time, competition has only become tougher in recent years. Chinese automakers, especially BYD, have been aggressively entering new markets with competitively priced electric vehicles and modern technology, putting added pressure on traditional manufacturers.
Honda’s recent sales figures in South Korea show just how difficult the market has become. The company sold fewer than 2,000 vehicles there last year, marking a decline of more than 20 percent compared with the previous year.
However, South Korea is only part of a much larger story. Honda has also been struggling in China, once one of its most important markets. In 2025, the company’s retail sales in China dropped to around 646,000 vehicles, down 60 percent from five years earlier. Reports have also suggested that Honda plans to close at least one joint-venture production plant in the country as part of a wider restructuring effort.
Elsewhere in Asia, the trend has been similar. Honda recorded year-on-year sales declines in Thailand, Malaysia, and Indonesia, all markets that were once considered strong opportunities for future growth.
Honda’s exit from South Korea may appear to be a market-specific decision, but it highlights a broader shift happening across Asia. Consumer preferences are changing quickly, electric vehicles are gaining momentum, and competition is fiercer than ever. For legacy brands like Honda, adapting to this new reality is no longer optional—it has become essential for long-term survival.
