New car purchase rates among young people drop to 10-year low in S. Korea

Seoul, Feb 23 (SocialNews.XYZ) The respective rates of new passenger car purchases by South Koreans in their 20s and 30s fell to their lowest levels in a decade last year, industry data showed on Monday.

According to the data from auto industry data tracker Carisyou, new car registrations among people in their 20s totalled 61,962 in 2025, accounting for 5.6 percent of all new cars registered last year, reports Yonhap news agency.

The share of new car registrations by those in their 20s stood at 8.8 percent in 2016 but has declined steadily over the past years, falling to the lowest level in 10 years in 2025.

The number of new car registrations for those in their 30s totalled 209,749 last year, accounting for 19 percent of the total. The rate has dropped 6.9 percentage points over the past decade, also to the lowest in 10 years.

In contrast, purchases among older age groups have steadily increased. People in their 60s registered 204,294 new passenger cars last year, accounting for 18.5 percent, while those in their 70s registered 50,861 units, or 4.6 percent.

Industry observers cited rising cost burdens and the spread of car rental services through mobile apps as key factors behind the decline in new car purchases among younger consumers.

"People in their 20s and 30s tend to not feel the need to own a car as much due to the expansion of the online-based car-sharing culture," said Kim Pil-soo, an automotive professor at Daelim University.

"Meanwhile, more people in their 60s and 70s are entering the job market, and some purchase vehicles to secure mobility," he added.

In the meantime, Hyundai Motor Group is preparing to announce a multi trillion-won investment plan in reclaimed land in North Jeolla Province to foster growth in areas of artificial intelligence (AI), hydrogen and robotics, industry sources said on Monday.

—IANS

na/

Source: IANS