Tesla's Model Y has surged to the top of South Korea's passenger car market, selling 8,705 units in July and dethroning the long-standing domestic leader, the Hyundai Grandeur. This achievement marks the second time the electric SUV has claimed the monthly best-seller title, following its initial breakthrough in May.

This milestone is particularly notable in South Korea, a market known for its strong preference for domestic brands. For decades, local manufacturers like Hyundai, Kia, and Genesis have consistently commanded 70-80% of the national market share, with models such as the Grandeur, Kia Sorento, or Hyundai Avante routinely holding the top spot. Traditionally, imported vehicles, primarily luxury brands from Germany like BMW and Mercedes, have remained in niche segments, lacking the sales volume to challenge the dominance of mass-market domestic cars.

The Model Y's success is a dual first: it is not only the first foreign model but also the first purely electric vehicle to become South Korea's monthly best-seller. Data from the Korea Automobile Importers and Distributors Association (KAIDA) shows Tesla Korea sold 10,237 vehicles last month, representing a 39,1% increase compared to the same period in 2025. This extends Tesla's streak of exceeding 10,000 monthly sales for five consecutive months, a trend that began in March and peaked with 11,119 units sold in June.

The Model Y in a Tesla store in South Korea. Photo: Hankyung

The Model Y in a Tesla store in South Korea. Photo: Hankyung

Tesla now holds a significant 33,1% share of all imported car sales in South Korea, totaling 30,976 units. This positions the brand well ahead of its closest competitors, BMW (6,533 units) and Mercedes (3,959 units). Essentially, one out of every three imported cars sold in South Korea last month was a Tesla. The Model Y was the primary growth engine, with 8,705 deliveries to customers, specifically 6,612 units of the Model Y Premium and 2,092 units of the Model Y Premium Long Range, outperforming the Hyundai Grandeur's 8,532 units.

Year-to-date, Tesla's cumulative sales in South Korea have reached 66,376 vehicles, a substantial 149,8% increase compared to the same period last year. The Model Y alone contributed 52,064 units, cementing its position as the best-selling imported model. Other top imported vehicles include the BMW series 5 (13,756 units) and the Mercedes E-class (13,228 units). The Model 3 also performed strongly, selling 1,531 units last month, bringing its year-to-date total to 10,392 vehicles and securing the fourth spot in the overall market. The strong performance of Tesla, alongside Chinese manufacturer BYD, is significantly expanding South Korea's imported car market. New imported car registrations last month totaled 30,976 units; while an 18,6% decrease from the previous month, it still maintained sales above 30,000 units per month. Total new imported car registrations for the first seven months of the year reached 215,008 units, up 30,1% compared to the same period in 2025.

My Anh (according to Chosun)