Domestic prices down 0.9%, imports down 1.3% — declines narrow sharply

Average EV prices turn positive, up 0.2%

Large vehicles including Carnival, Palisade remain under pressure

K Car's June outlook for average used-car prices by vehicle segment, covering both domestic and imported models. [K Car]
K Car's June outlook for average used-car prices by vehicle segment, covering both domestic and imported models. [K Car]

South Korea's used-car market is expected to stabilize in June compared with last month. While prices are still broadly declining, the pace of the drop has slowed considerably, and electric vehicles are showing signs of a rebound led by select popular models.

K Car, a direct-managed used-car platform, said Thursday it analyzed more than 740 models within 10 years of release trading in the domestic used-car market and found that average prices this month are expected to fall 0.9 percent for domestic vehicles and 1.3 percent for imports from last month. That is a significant improvement from May, when domestic prices fell 1.8 percent and imported vehicles dropped 2.8 percent. The narrowing declines suggest the steepest phase of the downturn has passed as seasonal demand and price adjustments converge, though price movements continue to diverge by model depending on demand and inventory conditions.

The most notable shift is in electric vehicles. Average EV prices swung from a 0.7 percent decline in May to a 0.2 percent gain in June. The turnaround reflects renewed consumer interest in EVs as fuel costs weigh on household budgets, with demand concentrated particularly in models priced between 20 million and 30 million won (roughly $14,500 to $21,700).

By model, the BYD Atto 3 posted the largest gain at 6.2 percent. The New Bongo III EV Cargo and the Tesla Model 3 Highland are each expected to rise 3.7 percent, while the Kia EV6 is forecast to climb 3.3 percent. The Genesis G80 Electrified is projected to gain 3.0 percent, the New Kia Ray EV 2.6 percent, and the Hyundai Motor Casper Electric 2.5 percent.

Among domestic vehicles overall, mainstream passenger models showed relatively stable pricing. The Hyundai Motor Casper is expected to dip 0.4 percent to 13.76 million won, while the Avante (CN7) is forecast to fall 0.6 percent to 15.17 million won. The Sonata The Edge, the New Sorento 4th generation, and the All New Palisade are all projected to hold steady at last month's levels.

RVs and large SUVs, however, are expected to remain under pressure. Some larger models that commanded elevated prices last year amid strong export demand continue to see corrections. The Mohave The Master is forecast to fall 5.9 percent, the Palisade 4.5 percent, the New Carnival 4th generation 3.9 percent, and the Carnival 4th generation 3.7 percent. For consumers considering a large family vehicle, the ongoing price adjustments may offer a more accessible entry point.

The imported-car market also saw its overall rate of decline slow, but weakness was pronounced in some premium SUV models. The BMW X3 (G01) is expected to drop 6.9 percent to 37.24 million won, while the X5 (G05) is forecast to fall 3.4 percent to 75.97 million won. The BMW X4 (G02) is projected to decline 3.5 percent, and the Mercedes-Benz GLS-Class X167 is expected to slip 2.8 percent.

Imported sedans showed comparatively steady pricing. The Mercedes-Benz E-Class W214 is forecast to hold flat at 70.57 million won, while the C-Class W206 is expected to ease 0.9 percent to 42.23 million won. The BMW 5 Series G60 is projected to fall 1.7 percent to 58.73 million won, and the 3 Series G20 is forecast to decline 1.1 percent to 38.21 million won.

"Both domestic and imported vehicles are showing a narrowing in month-on-month declines, confirming that the market has moved past the sharpest phase of the downturn and is entering a period of stabilization," said Cho Eun-hyeong, an analyst at K Car's PM team. "Electric vehicles in particular have turned positive on average prices, and mainstream passenger models are broadly stabilizing as well."


kwater@heraldcorp.com