BMW surpasses Mercedes in Korean sales for first time in 10 years

The top five imported car brands in South Korea underwent a major shake-up last year. BMW overtook Mercedes-Benz in sales for the first time in a decade, claiming the top spot. Despite facing an EV market slump known as the “chasm,” Tesla joined the top three for the first time.

According to the Financial Supervisory Service on Thursday, BMW Korea posted 6 trillion won ($4.4 billion) in 2024 revenue, surpassing Mercedes-Benz Korea’s 5.7 trillion won.

With the sales figure, BMW became the top foreign car brand in Korea, the first time since 2014. However, Mercedes led the pack in operating profit with 157.5 billion won, compared to BMW’s 136.3 billion won.

While the two brands often compete closely in unit sales, Mercedes has historically led in revenue due to higher vehicle prices. After the EV fire incident in Cheongna, Incheon, last August, however, Mercedes offered steep discounts and saw declining S-Class sales, dropping to second place.

TESLA RISES TO NO. 3

Tesla Korea took third place, surpassing Volkswagen Group Korea. Tesla posted 1.7 trillion won in revenue, up 48.4% from the previous year, with 25.9 billion won in operating profit, up 51.2%. Tesla has been a member of the “1 trillion won sales club” for four consecutive years since surpassing that mark in 2021. Some industry watchers say the market may now be realigning into a “BMW–Mercedes–Tesla” top-three structure. Tesla’s Model Y was the best-selling imported vehicle in Korea last year with 18,717 units sold.

PORSCHE, VW, VOLVO SEE DIVERGING FORTUNES

Porsche Korea ranked fourth, generating 1.3 trillion won in revenue, thanks to strong sales of the Cayenne. Sales, however, weakened, causing a 14.5% on-year drop in revenue. Although Porsche ranked 7th in unit sales with 8,284 vehicles, its high vehicle prices kept its revenue ranking higher.

Volkswagen Group Korea fell to fifth place, with revenue plunging 42.4% to 1.1 trillion won from 1.9 trillion won in the previous year. Volvo also dropped out of the 1 trillion won club, with 872.6 billion won in revenue, down 12.8% from the previous year. Toyota Korea’s results are not yet available due to differing fiscal year timings.

In terms of donations to social causes, Mercedes-Benz Korea contributed the most with 6.8 billion won, excluding 4.5 billion won in compensation paid to residents affected by the EV fire. It was followed by Porsche Korea with 1.8 billion won, BMW Group Korea with 1.3 billion won and Volkswagen Group Korea with 1.2 billion won. Tesla Korea, meanwhile, has not made any donations since it began publishing audit reports in 2019.

Write to Shin Jung-eun at newyearis@hankyung.com