After a 23-year run, Honda has formally announced it will terminate all four-wheel vehicle sales in South Korea by the end of 2026, while continuing to provide aftersales support to customers. This withdrawal exposes a brutal reality for legacy automakers attempting to survive in an arena dominated by tech-forward local giants and an aggressive influx of Chinese EVs.
Honda
A Victim of the Exchange RateThe official statement arrived via Honda Korea CEO Lee Ji-hong, who cited shifting global market conditions and severe exchange rate pressures, because Honda imports its Korean-market vehicles directly from its Ohio manufacturing plant. The persistently strong US dollar essentially vaporized the company’s profit margins.Last year, Honda managed to move a dismal 1,951 cars in South Korea—a sharp 22 percent drop year-over-year. The lineup had grown uncompetitive and stagnant, relying solely on aging staples like the Accord, CR-V, Odyssey, and Pilot.
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Author: Yash Bajaj
