Tesla accounts for 1 in 3 imported cars sold in South Korea in H1 2026, closing in on BMW and Mercedes-Benz combined

Tesla's sales in South Korea's imported car market during the first half of this year came close to matching the combined totals of BMW and Mercedes-Benz, with roughly one in three imported vehicles sold being a Tesla. Analysts say the center of gravity in a market long dominated by BMW and Mercedes-Benz is shifting rapidly toward electric vehicle brands.

According to the Korea Automobile Importers and Distributors Association (KAIDA) on Friday, newly registered imported passenger cars totaled 184,032 units from January through June, up 33.2 percent from 138,120 units in the same period last year. Tesla led all brands with 56,139 cumulative registrations — a 192.2 percent surge from 19,212 units in the first half of last year.

Tesla's market share among imported cars in the first half reached 30.51 percent, more than doubling from 13.91 percent in the same period a year earlier. In simple terms, more than three out of every 10 imported cars newly registered in South Korea during the first half were Teslas.

Tesla's growing presence is also evident against the traditional heavyweights. BMW registered 39,150 units and Mercedes-Benz 29,776 units in the first half, for a combined total of 68,926. Tesla's single-brand tally amounted to roughly 81.4 percent of that combined figure. In market share terms, Tesla's 30.51 percent trailed the BMW-Benz combined 37.45 percent by just 6.94 percentage points.

Tesla also drove the bulk of the market's overall growth. The imported car market expanded by 45,912 units in the first half, and Tesla alone accounted for 36,927 of that increase — 80.4 percent of the total gain. While the market grew by more than 30 percent on the surface, virtually all of that growth was concentrated in a single electric vehicle brand.

BMW and Mercedes-Benz told diverging stories. BMW posted 39,150 registrations, up 2.3 percent year-on-year, but its market share slipped from 27.72 percent to 21.27 percent. Mercedes-Benz saw registrations fall 8.6 percent to 29,776 units, with its share dropping from 23.58 percent to 16.18 percent. Neither brand kept pace with Tesla's growth rate, leaving both with a smaller relative footprint in the market.

The Model Y is the engine behind Tesla's dominance. The model recorded 43,359 registrations in the first half — surpassing BMW's entire brand total of 39,150 units. The Model Y alone also outsold all of Mercedes-Benz's 29,776 registrations by more than 13,000 units. In June, the Model Y registered 9,188 units, outpacing BMW's full brand total of 6,569 and Mercedes-Benz's 5,565.

A rising share of electric vehicles in the import market has further boosted Tesla. In June, imported electric vehicles accounted for 51.1 percent of all imported car registrations at 19,453 units — up 18.3 percentage points from 32.8 percent in June last year. Hybrids made up 39.7 percent of the market in the same period, gasoline vehicles 8.4 percent and diesel 0.7 percent. As electric vehicles crossed the majority threshold in the import market for the first time, Tesla emerged as the biggest beneficiary.

Among brands other than Tesla, BYD was the most notable performer in the first half. BYD registered 4,652 units in June alone for a 12.22 percent monthly share, while its cumulative first-half registrations jumped 807.9 percent year-on-year to 11,675 units. In June's best-selling model rankings, the Dolphin placed third with 2,747 units and the Sea Lion 7 fifth with 1,117 units, marking a strong early showing for the brand.

The outlook for the second half, however, is uncertain. Starting this month, BYD will be excluded from the government's electric vehicle subsidy program, which will inevitably weaken its price competitiveness. BYD Korea has said it will introduce its own support program to ease the burden on buyers, but sales momentum is likely to slow compared with Tesla and BMW, which retain their subsidy eligibility.

KAIDA Vice Chairman Jeong Yun-yeong said June's increase in newly registered imported passenger cars over the previous month reflected inventory buildup and new model effects at some brands.