November 25, 2024

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2023 Hyundai Tucson (left) and 2023 Kia Sportage (Getty Images Bank)

Sport utility vehicle sales in the South Korean market are projected to surpass 900,000 units in 2023 for the first time, marking a significant milestone as SUV sales rapidly approach double that of sedans.

There were 856,362 new SUV registrations, including recreational vehicles, in the first 11 months of 2023, data from the Transport Ministry analyzed by the CarIsYou data lab showed Monday. This exceeds the 837,948 SUV units sold throughout 2022 and represents the highest annual total since 2014.

SUV sales have overtaken sedans in market share since 2019 and the disparity has widened each year -- from 7.3 percentage points in 2020 to 16.2 percentage points in 2021 to 23.72 percentage points last year. Annual SUV sales until last month were 1.86 times greater than sedans, compared to 1.69 times in 2022.

Given an average of 77,851 monthly SUV sales this year and typically heightened fourth quarter vehicle purchases, December registration figures should propel the 2023 total over 900,000. Consequently, SUVs are also projected to account for over 60 percent of the passenger vehicle market share for the first time.

Just a decade prior in 2014, SUVs only had a 33 percent share, with total sales of 464,470 units -- nearly half the projected figure this year. The rapid rise in popularity began with 30 percent year-over-year SUV sales growth in 2015, fueled by the success of KG Mobility's compact SUV Tivoli, coupled with a newfound interest in "chabak," or car camping, made more viable with SUV cabins.

Sales continued climbing over subsequent years, further accelerated by the COVID-19 pandemic that spurred a 13.9 percent SUV sales increase in 2020.

The top 10 domestic models year-to-date reveal seven SUVs, the report showed. The Hyundai Grandeur sedan topped the list and was followed by the Kia Sorento, Kia Carnival and Kia Sportage SUVs.

By Moon Joon-hyun  (mjh@heraldcorp.com)