Honda announced on 23/4 its decision to exit the South Korean automobile market, citing changes in the global and local market environment. The company stated this move followed "careful consideration from the perspective of concentrating corporate resources to enhance mid- to long-term competitiveness."

Having entered South Korea in 2004, Honda found it remained a minor market, with domestic brands such as Hyundai and Kia long dominating sales. The competitive landscape is further intensifying as Chinese automaker BYD actively seeks market share.

Honda CR-V imported and sold in South Korea. Photo: AKB

In 2025, Honda sold fewer than 2,000 vehicles in South Korea, marking a decline of over 20% from the previous year. In march, the company's sales were only 84 vehicles, ranking 18th among 26 foreign brands operating there. Fellow Japanese automaker Toyota fared better, ranking 10th with 738 vehicles sold, while Tesla led the market with over 11,000 vehicles.

Honda is struggling with declining sales in key Asian markets, facing increasing competition from both Korean and Chinese brands.

In China, the company's retail sales fell to approximately 646,000 vehicles in 2025, a 60% decrease compared to five years prior. Reuters sources indicate that Honda will also close at least one automobile joint venture plant in China.

Honda's sales also decreased year-on-year in 2025 in Thailand, Malaysia, and Indonesia. In Vietnam, however, the company's sales saw a slight increase compared to 2024, rising by 1,6%.

While this news may disappoint many vehicle owners, Honda has pledged to continue providing after-sales support, including parts, services, maintenance, and warranties.

My Anh