Honda is leaving South Korea's car market in 2026 — Here's the full story

Honda Motor Co. entered South Korea with confidence, a strong global reputation and two of its well-known models, the Honda Accord and the Honda CR-V. After 23 years, the company is now exiting the country’s car market.

On April 23, 2026, Honda officially announced that its local unit, Honda Korea Co., will stop all four-wheel vehicle sales in South Korea by the end of 2026. The announcement was made by CEO Lee Ji-hong at a press conference in Seoul and confirmed through a global press release.

This is not a sudden move. Signs have been visible for some time. Still, a complete exit from passenger car sales is a big step for a major automaker in this market. So what led to this decision and what happens next?

Honda's 23-year journey in South Korea

Honda Korea was established in October 2001, initially focused on motorcycles. Car sales followed in May 2004 with the launch of the Accord sedan. Over the next two decades, the brand maintained a modest but stable presence. It sold a cumulative 108,600 cars in South Korea as of March 2026, according to the Korea Times. It was never a dominant player, but it held its ground and built a small, loyal customer base.

Honda Korea also made some forward-looking moves. In April 2023, it became the first imported car brand in South Korea to launch a dedicated online vehicle sales platform — a sign that the company was trying to adapt to changing buyer behaviour. But these efforts weren't enough to move the needle in a market that was shifting faster than Honda could keep up with.

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Honda South Korea exit — Numbers that tell the real story

Honda sold just 1,951 cars in South Korea in all of 2025. That's a 22% decline year-on-year for a full calendar year in a country where total imported car sales hit a record high. In March 2026, Honda managed to register just 84 units across the entire country. For context, Honda sold more than 13,000 units of the Accord alone in the United States in a single month around the same period.

Honda's share of South Korea's imported car segment was just 0.6% in 2025. BMW and Mercedes-Benz, by comparison, continue to sell tens of thousands of units annually in the same market.

Why Honda car sales failed to grow in South Korea

Exchange rate pressure was one of the biggest issues. Honda Motor Co. imports cars into South Korea from its plant in the US. As the dollar got stronger, costs went up in local currency. This made pricing difficult and reduced margins. At the same time, the lineup had started to feel limited. Models like the Honda Accord, Honda CR-V, Odyssey and Pilot were still on sale, but updates were not keeping pace with what buyers expected. 

In a market dominated by Hyundai and Kia, this made things harder. These brands have strong local presence and have been quick with new tech and EVs. German brands like BMW and Mercedes-Benz have stayed strong by focusing on luxury, but Honda sits in the middle where competition is toughest. 

Another challenge is the rise of Chinese EV brands. BYD has already seen strong growth and newer players like XPeng and Zeekr are entering with competitive pricing and modern technology. For a brand with mostly petrol models and a smaller lineup, this made the situation even more difficult.

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What happens to existing Honda car owners in South Korea?

Honda has been clear that it will not abandon current customers. As confirmed in the official Honda global press release dated April 23, 2026, Honda Korea will continue to provide vehicle servicing, maintenance, spare parts supply and warranty coverage even after car sales end.

Autoblog reported that Honda is legally required to maintain after-sales service for existing car owners for the next eight years. So if you own a Honda Accord or CR-V in South Korea today, your ownership experience should not change immediately.

Motorcycles remain Honda's stronghold in South Korea

While Honda Motor Co. is exiting the car business, it is not leaving South Korea completely. Its motorcycle division will continue and remain the main focus in the country. Honda holds around 40% of the motorcycle market in South Korea. This is a strong position built over many years. Popular models include the PCX125, Super Cub, FORZA350 and CBR600RR.

Honda Korea has said it will invest more in this space. The focus will be on expanding the product range, improving customer service and strengthening the overall brand experience.

Honda is not the first Japanese brand to exit South Korea

This move puts Honda Motor Co. in the same category as Nissan, which exited South Korea back in 2020 due to low sales, high costs and a tough market. With Honda’s exit, Toyota is now the only major Japanese brand still selling passenger cars in South Korea. How long it can hold that position in such a competitive market is something to watch.

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