Honda Korea has announced it will withdraw from the automobile business by the end of 2026, citing declining sales and delayed progress in electric vehicle development.
The decision, revealed during a press conference in Seoul, reflects a broader strategic shift by its parent company Honda Motor Co. to streamline operations and focus on more competitive segments.
“We sincerely appreciate the support we have received from our customers, dealers and partners,” said CEO Lee Ji-hong, adding that the company aims to secure long-term competitiveness by reallocating resources.
Honda Korea recorded sales of 1,951 vehicles in 2025, marking a 22% decline from the previous year. The automaker once thrived in the South Korean market, notably surpassing 10,000 annual vehicle sales in 2008, driven by strong demand for models such as the Honda Accord and Honda CR-V.
However, shifting market dynamics, including exchange rate volatility and intensifying competition in the electric vehicle (EV) sector, have challenged the company’s position. Local rivals like Hyundai Motor Company and Kia Corporation have accelerated their electrification strategies, rolling out diverse EV lineups.
Honda Korea acknowledged its slower pace in EV adoption as a key factor in its withdrawal from the automobile segment.
Going forward, the company will concentrate on expanding its motorcycle business, where it has established a strong foothold. Since entering the Korean market in 2001, Honda has sold more than 420,000 motorcycles and continues to maintain a leading market share.
Despite exiting car sales, the company assured customers it will continue to provide after-sales services to support existing vehicle owners.
