South Korea 2024. Motorcycles Market Keeps Struggling (-14.9%)

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Yamaha-NMax
Yamaha-NMax

South Korea Motorcycles Market is losing in double digit in 2024. Sales year to date September were 83.744 (-14.9%). Honda is market leader ahead of the local manufacturer Daelim and Yamaha. The EVs segment is losing 20.1%.

 

South Korea’s economy barely grew in the third quarter as consumer spending showed signs of recovery but exports declined, raising the chances for more stimulus to support growth. That prompted the central bank to warn of a potential downgrade to its 2024 growth forecast, while the finance minister called for response measures to confront the slowdown.
Gross domestic product in the July-September quarter expanded a seasonally adjusted 0.1% from a quarter earlier, the Bank of Korea’s (BOK) advance estimates showed on Thursday, lower than market expectations. 
However, the South Korean motorcycles market keeps struggling and sales year to date September were 83.744 (-14.9%).

The lost is driven by the scooter segment (-17.5%) while the motorcycle looks more resilient (-6.2%). Even the recently born electric segment is struggling, with sales down 20.1%

Looking at the competitive arena, Honda is the market leader, although sales are down 20.6%. In second place the local manufacturer Daelim (-5.1%) followed by Yamaha (-42.6%).

Korean Market heritage and evolution

The South Korean motorcycles market is relatively small and the two wheelers are not a primary mobility device in the country, with annual sales counting only 5% of the powerful automotive industry.

The presence of the huge Hyundai Group one of the reason which focused consumers attentions more on the four than on the two wheeler across the years and nowadays roads are full of cars with only few motorcycles compared with all the other top industrial countries in the World.

Korean motorcycles market grew up in the last years of last century mainly driven by the demand for food service providers or courier services for livelihood rather than daily transportation or leisure demand.

The size of the domestic motorcycle market exceeded 300,000 units and was dominated by Kia, before filing for the IMF bailout. After Kia stopped to produce these vehicles the market started a long decline decreasing to about 100,000 units in 2010 and then stabilizing around this level.

South Korea motorcycles

Kick-scooter boom in Seoul

As in many other metropolitan areas around the World, even the Korean capital recently has been invaded by so called “e-scooter”, which must not be confused with the e-scooter. They are the kick-scooter with a max speed of 25 km per hour, without a plate and with limited circulating rules.

Kick-scooters have taken over Seoul. Starting from Gangnam station and branching out, you will see more and more E-Scooters on the streets. They have been popping up over the past few years. Companies like Beam, Lime, Xing Xing, and Kickgoing have placed their e-scooters near over 100 subway stations in Seoul. It is estimated that 17 companies are operating over 40,000 e-scooters in Seoul.

However, opinions are divided amongst the citizens of Seoul as to whether these e-scooters are good for the community. There have been many complaints from homeowners, pedestrians, and drivers in Korea. In mid 2020, Government have introduced a new regulation for these devices, now considered similar to bicycles, allowing their riding to people over 13 age.

 

South Korea motorcycles
Daelin Zappy