South Korea’s Auto Market: Youth Demand Slides as Seniors Drive Growth

Declining Ownership Among 20s and 30s​

New data from South Korea’s auto industry tracker Carisyou shows that new passenger car purchases by people in their 20s and 30s fell to their lowest levels in a decade in 2025.

New car registrations among consumers in their 20s totaled 61,962 units, accounting for 5.6 percent of all new cars registered last year. This marks a steady decline from 8.8 percent in 2016, bringing the share to its lowest level in ten years.

For those in their 30s, registrations stood at 209,749 units, representing 19 percent of total new car registrations. Over the past decade, this share has dropped by 6.9 percentage points, also reaching a ten-year low.

Industry observers attribute the decline primarily to rising ownership costs and the growing popularity of app-based car rental and sharing services. According to automotive professor Kim Pil-soo of Daelim University, younger consumers increasingly do not feel the need to own a vehicle due to the expansion of online-based car-sharing culture.

Older Consumers Increasing Market Share​

In contrast, older age groups have steadily expanded their presence in the new car market.

• Consumers in their 60s registered 204,294 units, accounting for 18.5 percent of total new car sales.
• Those in their 70s registered 50,861 units, representing 4.6 percent.

Experts note that greater workforce participation among older individuals has contributed to higher vehicle purchases, as mobility needs remain strong.

Strategic Industry Developments​

Meanwhile, Hyundai Motor Group is preparing to unveil a multi-trillion-won investment plan in reclaimed land in North Jeolla Province. The investment is expected to focus on artificial intelligence, hydrogen technologies, and robotics, reflecting a broader strategic pivot toward next-generation mobility and advanced manufacturing sectors.


The contrasting trends highlight a structural shift in South Korea’s auto market, where ownership patterns are evolving across generations while major manufacturers position themselves for future technology-driven growth.