Affected by boycotts and Tesla's advance, Honda announces closure of car operations in Asia by the end of 2026
Honda has confirmed that it will end the sale of cars in the South Korean market by the end of 2026. The decision marks the end of a 22-year trajectory of the Japanese automaker in the country, motivated by a sharp drop in demand and a global strategic restructuring that aims to prioritize more profitable markets.
Although sales of new vehicles will be interrupted, the operation of motorcycles – a segment in which the brand holds a relevant share – will be preserved. Honda also assured that it will maintain the technical assistance network and the supply of parts for current owners of models such as Accord and CR-V, minimizing the immediate impact to local consumers.
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The decline of the brand in the country has become critical in recent years. In 2024, Honda sold fewer than 2,000 vehicles in South Korea — insufficient to sustain a robust distribution structure. Last month, only 84 units were registered, in a performance that, although it surpasses brands such as Cadillac (75) and Ford (35), falls far short of the company’s history, which sold 12,356 cars in the country in 2008.
Analysts point out that Honda has never fully recovered from the boycott movement of Japanese products started in 2019, added to the strong offensive of local manufacturers Hyundai and Kia. While the Japanese brand languished, German manufacturers such as BMW and Mercedes-Benz consolidated their presence at the top of the import ranking, registering 6,785 and 5,419 monthly registrations, respectively.
Tesla also changed market dynamics by registering 11,130 units in the same period, evidencing the South Korean consumer’s preference for premium or high-tech electric models.
