South Korea Motorcycles Market is falling down for the 4th year in a row. In the first half 2025 the market decline continues and sales at 46.890 were down 6.6% from the correspondent period last year. Zontes jumps in 4th place.
Economic Outlook
South Korean GDP growth forecast for 2025 has been sharply revised downward from 1.5% in February to 0.8% in June. The recovery in domestic demand has been delayed, while export growth is expected to slow further due to the impact of U.S. tariffs.The future growth path is subject to both upside and downside risks related to trade negotiations, and will be significantly influenced by whether, and to what extent, the government’s economic stimulus measures are implemented.
CPI inflation is projected to stay stable at 1.9% in 2025. The upward pressure from rising prices of processed foods and services are expected to be offset by downward pressure such as falling global oil prices and low demand. The future inflation path is expected to be influenced by domestic and global economic conditions, exchange rate and oil price movements, and the government’s price stabilization measures.
Motorcycles Market Data and Trend
Although the positive economic environment, the South Korean motorcycles market keeps struggling reporting in 2024, losing for the third lost in a row.
In the first half 2025 the market decline continues and sales at 46.890 were down 6.6% from the correspondent period last year.
The lost is driven by the scooter segment (-7.5%) while the motorcycle looks a little more resilient (-5.7%). The electric segment is moderately growing (+11.1%).
Looking at the competitive arena, Honda is the market leader, with a positive trend this year (+9.1%).
In second place the local manufacturer Daelim (+2.9%) followed by Yamaha which is losing deeply (-40.7%).
Although starting local operation just in 2022, the Chinese Zontes is the raising star, already gaining the fourth place with 1.682 sales in the last half.
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.
