South Korea Motorcycles Market is falling down. 2024 sales have been 105.166 (-9.4%) losing near one third of the size in the last three years. Honda is market leader ahead of the local manufacturer Daelim and Yamaha. The EVs segment lost 21.2%.
Strong economic fundamentals and sound macroeconomic policies have helped the Korean economy navigate through multiple global shocks in recent years. Economic growth has recovered, inflation has steadily declined, and financial stability risks have decreased. Key medium-term challenges are to boost the growth potential amidst rapid population aging, and to adapt to shifting trade patterns, transformative technological change, and climate vulnerabilities.
“Growth is expected to reach 2.2 percent in 2024, supported by strong semiconductor exports, while partially offset by a weak recovery of domestic demand. Real GDP is projected to expand by 2.0 percent in 2025 as the economy converges to its potential growth and the output gap is closed. Inflation has declined to 1.3 percent (y/y) in October 2024 and is projected to remain close to the target of 2 percent in 2025.
The lost is driven by the scooter segment (-11.5%) while the motorcycle looks more resilient (-3.3%). Even the recently born electric segment is struggling, with sales down 21.2%
Looking at the competitive arena, Honda is the market leader, although sales are down 8.1%. In second place the local manufacturer Daelim (+2.4%) followed by Yamaha (-44.5%).
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.
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.
