Tesla Model Y Sold 8,762 Units in May, Claiming Top Spot in Domestic Market

Tesla Model Y sold 8,762 units in May, securing its first-ever number one position in South Korea’s overall passenger car market. This marks the first time in imported car history that such a feat has been achieved, signaling a shift in the competitive landscape of the domestic automotive market.

This represents the final nail in Tesla’s record-breaking streak. Following its breakthrough in March when it became the first imported car brand to exceed 10,000 monthly sales, Model Y reached 10,000 units in April as the first individual vehicle model from an imported brand to do so. In May, it further wrote new history by surpassing even domestically produced cars.

Model Y outperformed all of South Korea’s top-selling domestic vehicles, including the Grandeur (5,183 units), Sorento (7,836 units), Sportage (4,760 units), and Carnival (4,543 units). While models like the BMW 5 Series and Mercedes-Benz E-Class previously dominated the imported car market, none had ever surpassed even the leading domestic vehicle models. An industry insider commented, “In the past, it was standard for well-proven domestic cars like the Grandeur or Sorento to top monthly sales charts. Model Y’s rise to number one is a symbolic indication that consumers’ criteria for choosing vehicles are changing rapidly.”

The competitive pricing of Model Y has driven its surge in sales. Tesla imports Model Ys produced at its factory in Shanghai, China. The actual purchase price of the rear-wheel-drive (RWD) version equipped with a lithium iron phosphate (LFP) battery, after applying electric vehicle subsidies, falls in the late 40 million won range. This makes it significantly more accessible compared to imported electric cars, which previously ranged from 70 to 80 million won. An official from the imported car industry explained, “Although it is an imported car, its price has dropped to a level where it can directly compete with domestic electric vehicles, and Chinese-made Model Ys have played a major role in this.”

The brand’s image and software experience also contribute to strong sales. Although Model Y competes with vehicles like Hyundai’s Ioniq 5 and Kia’s EV6 in terms of vehicle class, consumer perception is entirely different. Features such as Full Self-Driving (FSD) capabilities and continuous over-the-air (OTA) software updates have created the image of it as “the most advanced electric vehicle.” Hyundai and Kia’s Highway Driving Assist (HDA) systems are considered inferior to FSD. Industry analysts suggest that “consumers feel less resistance to paying Tesla the same amount as for Hyundai’s electric vehicles rather than spending 50 to 60 million won on those models.”

The rapid influx of consumers in their 20s and 30s has accelerated sales growth. Among the 26,381 new individual Model Y registrations from January to May this year, nearly half—12,631 units (47.9%)—were purchased by people in their 20s and 30s. When including those in their 40s, the figure rises to 22,479 units (85.2%). In contrast, Hyundai and Kia still accounted for the majority of sales in May, with 45,364 and 44,713 units respectively, but there is a clear decline in sales of their flagship models.

The concentration of Model Y sales is another point of strength. The 8,762 units sold of Model Y exceeded the domestic sales figures of Renault Korea (2,893 units), KGM (3,318 units), and Korea GM (808 units) in May alone, and were also higher than the combined total sales of these three mid-sized automakers (7,019 units). Recently, Tesla has diversified its lineup by making the RWD model standard while adding all-wheel-drive AWD Long Range and “Y L” (long body) versions to attract a wider range of customers.

The industry interprets these results as more than just a change in best-selling car rankings. It signals that the competitive focus in South Korea’s automotive market is shifting from engine-based class competition to electrification and software-driven competition.