While Tesla’s electric vehicles have gained popularity worldwide, the company’s success in South Korea has reached new heights. In September 2025, Tesla delivered 9,069 vehicles in the country, marking its highest monthly sales figure since 2017. This extraordinary achievement reflects a dramatic shift in South Korean consumer preferences toward electric vehicles and Tesla’s brand.
The Model Y has been the driving force behind this surge. In September alone, the Model Y achieved nearly 8,500 units, representing a 954.4% year-on-year increase. This growth didn’t happen overnight. When Tesla launched a refreshed Model Y in April 2025, it triggered consistent monthly sales dominance starting in May. Since then, the Model Y has maintained its position as the top-selling imported vehicle for four consecutive months through August 2025.
Tesla’s refreshed Model Y triggered consistent sales dominance starting May 2025, maintaining top-selling imported vehicle status for four consecutive months.
Tesla’s market dominance in South Korea is striking. The company captured 73% of the imported electric vehicle market in August 2025. The Model Y even ranked as the second-best-selling vehicle overall in South Korea when including domestic models during September 2025. This success has advanced South Korea to become Tesla’s third-largest global market, trailing only the United States and China. Hyundai and Kia combined represent over 67% market share, demonstrating the strength of domestic manufacturers alongside Tesla’s growth.
Several factors contributed to this historic boom. Government subsidies lowered purchase prices and reduced concerns about electric vehicle costs. The refreshed Model Y appealed to younger Korean consumers who appreciated the vehicle’s trendy brand image and premium features. The timing was perfect, as South Korean consumers were increasingly accepting electric vehicle technology. Government subsidies have reduced the overall affordability of Tesla vehicles in the competitive South Korean market. South Korea’s domestic automakers, including Hyundai and Kia, continued their strong performance with 53.0% and 39.4% market shares respectively in September 2025.
Tesla’s performance has transformed South Korea’s automotive environment. Year-to-date deliveries reached 34,543 units through August 2025, establishing Tesla’s highest cumulative figure since entering the market. The company now represents nearly 30% of total imported car sales. Meanwhile, traditional luxury brands like BMW and Mercedes-Benz have seen their market positions weaken. However, Tesla owners should consider that resale values have been dropping significantly in global markets, with some models depreciating twice as fast as traditional luxury vehicles.
Competition is emerging, though. Chinese automaker BYD entered the market with the Sealion 7, achieving over 800 sales in September 2025. However, BYD’s presence remains modest compared to Tesla’s substantial volume. The data suggests that Tesla’s Model Y boom shows no signs of slowing down in South Korea’s competitive automotive market.