Lead

Honda Korea, the South Korean sales unit of Japan's Honda Motor Co., announced Thursday that it will withdraw from the country's automobile market, ending its 23-year operation in the country. The carmaker revealed the plan at a press conference in Seoul, stating it will cease vehicle sales in South Korea by the end of 2026.

Coverage comparison

Two reports from Yonhap News Agency, both published Thursday, covered the announcement. The two articles contain identical information and quotes, with the first providing additional details on the company's sales figures and milestones.

Both reports quoted Lee Ji-hong, head of Honda Korea, who explained the reasoning behind the decision: "We have carefully reviewed our business direction in light of changing market conditions and exchange rate fluctuations."

Key claims

  • Honda Korea will withdraw from the South Korean automobile market, with vehicle sales ceasing by the end of 2026.
  • The company will continue to provide customer services for existing customers.
  • Honda will strengthen its motorcycle business in South Korea by enhancing product competitiveness, customer service, and brand experience.
  • Honda Korea had sold a cumulative 108,600 cars in South Korea as of last month.
  • The company has maintained the top market share in the motorcycle market, with cumulative motorcycle sales reaching 420,600 units.

Perspectives

The announcement marks a retreat from a challenging market for foreign automakers in South Korea. Honda entered the South Korean market in 2001 with its motorcycle business, followed by the launch of its automobile sales unit in March 2003. According to Yonhap, Honda Korea had sold a cumulative 108,600 cars in South Korea as of last month.

Despite the withdrawal from the automobile segment, the company underscored its commitment to the motorcycle business, stating it will enhance product competitiveness, customer service, and brand experience. Yonhap reported that Honda has maintained the top market share in the motorcycle market, with cumulative sales reaching 420,600 units.

Context

Japanese automakers have faced headwinds in South Korea in recent years, including trade tensions between the two countries and changing consumer preferences toward domestic brands. Honda Korea had also introduced various digital initiatives in recent years, including becoming the first import car brand in the country to launch an online vehicle sales platform in April 2023, as reported by Yonhap.