Honda Korea CEO Lee Ji-hong speaks during a press conference on the company’s withdrawal from automobile business in Seoul, Thursday. Yonhap
Honda Korea has decided to close its automobile business here by the end of this year due to the carmaker’s steeply falling sales and belated electrification efforts, the company said Thursday in a press conference.
The Japanese automaker said the latest decision reflects its strategic shift to optimize its business structure and focus more on core growth areas.
“We sincerely appreciate the support we have received from our customers, dealers and parners who have shown great interest in Honda automobiles,” Honda Korea CEO Lee Ji-hong told reporters during the press conference.
Honda Korea sold a total of 1,951 vehicles in 2025, down 22 percent from the previous year. The carmaker enjoyed a heyday in the mid-2000s, with the automaker achieving annual sales of 10,000 vehicles for the first time in 2008, based on strong demand for its flagship Accord sedan and the CR-V SUV. The company first started selling cars in Korea in 2004.
“Considering changes in the market environment, such as the fluctuating exchange rate, Honda Korea decided to concentrate our resources on key areas to secure long-term competitiveness,” Lee said.
Honda Korea’s Accord hybrid sedan / Courtesy of Honda Korea
Honda Korea will focus on strengthening its motorcycle business and enhancing its brand value in the lucrative area. The company has sold more than 420,000 motorcycles since they entered the local market in 2001, and maintains a leading sales share.
The carmaker was less successful in developing electric vehicles (EVs), another key reason behind its decision to end auto sales in Korea. Rivals such as Hyundai Motor and Kia have expand their investments in electrification and launched diverse EV lineups for the global market.
Honda Korea pledged to continue after-sales services for its customers to prevent any any difficulties in auto maintenance.
