Honda announced on the 23rd that it will end passenger car sales in South Korea by the end of 2026. Sales have been sluggish, and the company determined that continuing the business would be difficult. It will continue selling motorcycles, where growth is expected, and concentrate management resources such as personnel and capital.
Passenger car sales in South Korea began in 2004. At the peak in 2008, about 12,000 units were sold, but due to pressure from local automakers like Hyundai Motor, sales dropped to about 2,000 units in 2025.
In South Korea, four models—including the sedan “Accord” and the sport utility vehicle (SUV) “CR-V”—are imported and sold from overseas. After-sales services such as vehicle inspections and repairs will continue.
Honda is facing a projected net loss of 420 billion to 690 billion yen for the fiscal year ending March 2026, partly due to costs associated with revising its electric vehicle (EV) strategy, and is pushing forward with cost reductions.
The joint venture with Sony Group, aimed at EV development and sales, announced on the 21st that it will significantly downscale operations. In China, where sales are also sluggish, Honda plans to suspend operations at some factories.