This year, new compact car sales by the five domestic automakers are expected to fall short of 100,000 units for the second straight year, marking an all-time low. In contrast, compact cars are ranking first and second in the used-car market.
According to aggregated sales results from Hyundai Motor, Kia, GM Korea, Renault Korea, and KG Mobility on the 16th, compact car sales by the five domestic automakers in Korea from January to October this year totaled 64,023 units, down 27.3% from the same period last year (82,485 units). The annual sales volume this year is expected to come in around 70,000 units, the lowest level on record.
The only compact cars currently sold in Korea are Hyundai Motor's Casper and Kia's Ray, Ray EV, and Morning. Compact car sales by the five automakers posted a steady trend with 133,023 units in 2022 and 123,679 units in 2023. Then, after sales of the Chevrolet Spark were halted last year, annual sales fell to 98,743 units, dropping below 100,000 within a year.
In addition to a lack of new models, delays in compact car production and the popularity of small sport-utility vehicles (SUVs) appear to have depressed new compact car sales. In Korea, no new compact car has been launched since the Casper in 2021 and the Ray EV in 2023. The Casper, which had led the compact segment by selling more than 30,000 units annually, sold 6,725 units from January to October this year, adding to the slump. The Casper Electric, the electric version of the Casper, is classified as a small car in Korea.
However, as more consumers turn to used cars amid the economic downturn, compact cars are enjoying strong popularity in the used-car market. According to Kaizuyu Data Research Institute, in actual used-car transactions in the third quarter of this year, the Morning ranked No. 1, the Spark No. 2, and the Ray No. 4, putting three compact models in the top five.
Overseas, compact cars produced in Korea are receiving strong responses. Inster (the overseas name for the Casper Electric) was included among the final 10 candidates for "2025–2026 Japan Car of the Year."
An auto industry official said, "Demand for compact cars is shifting to small SUVs and used cars," and added, "With no new model launches likely for the time being, the downturn in Korea's compact car market appears set to continue."