Sales Champion for Four Consecutive Months, How Much Do Koreans Love Tesla?

Gasgoo Munich- New registrations for imported passenger vehicles in South Korea hit 29,860 units in May 2026, a 5.9% increase from a year earlier, according to the latest industry data from the Korea Automobile Importers & Distributors Association (KAIDA).

Tesla is the clear standout in this report. With 10,866 units sold, the company has claimed the top spot among imported brands for four straight months, solidifying a lead it has held firmly since February.

More importantly, this isn't just a fleeting surge for Tesla in the Korean market—it's becoming an unstoppable new normal.

In March, Tesla became the first imported brand to sell over 10,000 units in a single month, a pace it has sustained for three months running. By the end of May, Tesla's cumulative sales for the year had reached 45,020 vehicles—a staggering 250.8% jump from last year. That accounts for 30.84% of the total 145,973 imported vehicles sold in Korea during the same period.

Put simply: one in every three new imported cars sold in South Korea is a Tesla.

With One in Every Three Imports a Tesla, How Did the Model Y Take the Crown?

Behind these staggering numbers lies a single driving force: the Tesla Model Y.

In May alone, the Model Y line sold 8,708 units. The Premium variant led the pack as the best-selling imported model with 7,195 units, followed by the Model Y Long Range with 1,513 units.

Even across the broader South Korean auto market, Tesla is exerting comprehensive pressure on domestic bestsellers.

With 8,762 registrations in May, the Model Y outsold the Kia Sorento (7,836 units) and the Hyundai Grandeur (5,183 units), marking the first time a single imported model has overtaken domestic rivals to claim the overall top spot.

Tesla's surge in South Korea is no stroke of luck.

Pricing is its primary weapon. Since 2025, Tesla has implemented aggressive price cuts in South Korea: the post-subsidy price of the Model 3 has dropped below 40 million won (approximately $27,100), while the Model Y has also undergone multiple rounds of reductions.

For consumers in their 30s and 40s with strong purchasing power, the appeal is obvious: a smart EV with Autopilot, distinct design, and continuous software updates—all at this price point.

Brand recognition serves as Tesla's deeper moat.

In the eyes of South Korean consumers, Tesla isn't just a car; it's a symbol of the electric vehicle revolution.

Image Source: Tesla

Industry analysts point out that Tesla's comprehensive lead in software and overall performance is the key factor that traditional automakers cannot shake. On the supply side, nearly all Model Y and Model 3 units allocated to the Korean market come from the Chinese Gigafactory. By the end of April, China-built Teslas accounted for a staggering 97.6% of all registered Tesla vehicles operating in South Korea.

This efficient and flexible production and supply chain layout has powerfully guaranteed a stable supply for the Korean market.

Of course, the favorable tailwinds of the broader market cannot be ignored. Government subsidies provide institutional incentives for consumers to switch to EVs. Meanwhile, persistently high international oil prices are creating practical cost pressures that push drivers away from internal combustion engines.

With these multiple factors aligning, the electrification of South Korea's imported car market has shifted into high gear.

Can BMW and Mercedes-Benz Team Up to Challenge Tesla?

The most direct impact of Tesla's meteoric rise has fallen on the German luxury brands that long dominated South Korea's import market.

In May, BMW ranked second with 6,555 units sold, while Mercedes-Benz took third place with 3,553 units.

Notably, the combined sales of BMW and Mercedes totaled just 10,108 units—still less than Tesla's single-brand tally of 10,866. The former landscape of a "duopoly" has been completely rewritten into a new dynamic of "one superpower, many contenders."

While European brands like Audi and Volvo have posted their own gains, they simply cannot match Tesla's scale.

In fact, data on powertrain types for May show that South Korea's internal combustion market is shrinking rapidly: gasoline models accounted for just 10.4%, while diesel models plummeted to 0.6%.

Against this backdrop, the traditional high-end market that German luxury brands rely on is being squeezed dramatically. Their transition to electrification clearly cannot keep pace with the speed at which Tesla is driving demand through pricing power and brand strength.

Another shift worth watching comes from Chinese EV brands.

BYD surged to fourth place among imported brands in April with 2,023 units, but slipped to seventh place in May with 1,032 units due to supply constraints.

In April, BYD's single-brand sales even surpassed the combined total of Japanese brands like Lexus and Toyota—the first time Chinese brands have overtaken Japanese brands in South Korea's import market rankings by country of origin.

This historic breakthrough signals that the competitive landscape of South Korea's import market is shifting from a traditional duel between German and Japanese factions to a new arena where global giants and Chinese new-energy forces vie for dominance.

Looking ahead, balancing consumer interests, market competition, and industrial protection will be the critical variable determining the next phase of the South Korean import market.

For now, the answer seems clear: for South Korean consumers, choosing an EV that is well-equipped, constantly evolving, and carries strong brand equity at an affordable price requires little hesitation. Tesla's 250.8% year-over-year surge and 30% market share in the first five months of the year represent the market's most direct vote.