Honda to Cease Automobile Sales in South Korea by End of 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy HMC?
Source: seekingalpha
- Market Exit Decision: Honda has decided to cease automobile sales in South Korea by the end of 2026, aiming to concentrate resources on core areas of strength in response to changes in the global and South Korean automobile market, indicating a strategic shift in its market approach.
- Continued After-Sales Services: Despite halting automobile sales, Honda will continue to provide after-sales services in South Korea, including vehicle servicing, parts supply, and warranty support, ensuring existing customers' needs are met and maintaining brand loyalty.
- Historical Context: Honda has been selling motorcycles in South Korea since 2002 and automobiles since 2004 through its subsidiary Honda Korea, highlighting its long-standing presence and commitment to consumers in the market.
- Joint Venture Outlook: Even after the cancellation of EV plans, Honda's joint venture with Sony will continue to operate, reflecting Honda's ongoing exploration in the electric vehicle sector and its ability to seize future market opportunities.
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Analyst Views on HMC
About HMC
Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Continued After-Sales Services: Despite halting automobile sales, Honda will continue to provide after-sales services in South Korea, including vehicle servicing, parts supply, and warranty support, ensuring existing customers' needs are met and maintaining brand loyalty.
- Historical Context: Honda has been selling motorcycles in South Korea since 2002 and automobiles since 2004 through its subsidiary Honda Korea, highlighting its long-standing presence and commitment to consumers in the market.
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- Decline in Hardware Sales: Despite hardware sales dropping to 110 billion yen in Q4 from 183 billion yen a year earlier, strong performances in the image sensor and music segments supported overall revenue, reflecting the company's success in diversifying its business.
- Future Outlook: Sony forecasts a 13% increase in net profit for FY2027 to 1.16 trillion yen, demonstrating confidence in future profitability, even as it anticipates a slight revenue decline to 12.3 trillion yen, highlighting market environment challenges.
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- SUV vs. Sedan Sales Trends: Honda's truck sales, mainly SUVs, MPVs, and pickups, dropped nearly 8% to 327,569 units, while sedan sales increased by 10% to 146,667 units, reflecting shifting consumer preferences.
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- Continued After-Sales Services: Despite halting automobile sales, Honda will continue to provide after-sales services in South Korea, including vehicle servicing, parts supply, and warranty support, ensuring existing customers' needs are met and maintaining brand loyalty.
- Historical Context: Honda has been selling motorcycles in South Korea since 2002 and automobiles since 2004 through its subsidiary Honda Korea, highlighting its long-standing presence and commitment to consumers in the market.
- Joint Venture Outlook: Even after the cancellation of EV plans, Honda's joint venture with Sony will continue to operate, reflecting Honda's ongoing exploration in the electric vehicle sector and its ability to seize future market opportunities.
See More
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