This problem also exists in Canada. I don’t know why Honda doesn’t offer a Civic LX Hybrid to compete with the Corolla LE Hybrid. The base Corolla hybrid sells extremely well in Canada, and Honda is really missing out on sales by limiting the hybrid to more expensive trims.
IIRC, a base Civic starts only a few hundred dollars less than a Corolla hybrid in Canada, while the hybrid Civic is several thousand dollars more than the hybrid Corolla.
That’s exactly the problem. The cheapest Civic hybrid costs way more than the Corolla hybrid because there’s no true base hybrid model. If they plopped the hybrid into the Civic LX, it would be an instant hit.
Really half baked effort from Honda those last years. No Civic, not nearly enough dealerships to compete with Toyota, no 4x4/AWD offerings for countryside consumers and out-of-touch pricing.
BYD and Geely are smashing Honda sales rn, and deservedly so. Never forget the ZRV fumble. Charging Hybrid AWD prices for an anemic NA 2.0 paired with a gutless CVT.
Mitsubishi might go under as well, since they only really sell the Triton right now, and it also has crap pricing, really poor financing options. People would only buy the Triton as a cheaper Hilux alternative or if it had vastly superior drivetrain offerings.
To be fair with Mitsubishi, the Triton does hold the whole brand well, but one single truck can just carry so much. Honda is just imploding themselves out of sheer stupidity and they are deserving each single customer they are losing to BYD.
Triton is great, but Mitsubishi financing is utter crap and it loses more value than the Hilux on resale. It's a better truck, but the cost of ownership kills the deal. If only they compensated the upfront cost...
South Korea is generally a terrible market for foreign brands. 80-85% of car sales are domestic brands due in part because of 25% tax/tarrifs on foreign cars.
Honda doesn't make any cars that are significantly cheaper or better or more interesting than anything domestic brands have to offer so they struggle to compete for any market share.
The bulk of foreign car sales in South Korea are luxury European brands or EV's.
How bad is Renault and GM there right now ? I remember Renault and GM were considered their domestic automakers, as both formerly were Samsung Motors and Dagwood Motors.
80-85% of car sales are domestic brands due in part because of 25% tax/tarrifs on foreign cars.
Foreign imports account for just over 20% which is not insignificant, especially compared to Japan whose imports stands at 6%. The US is about 40%, but mostly from Canada and Mexico.
due in part because of 25% tax/tarrifs on foreign cars.
No such tariff
The bulk of foreign car sales in South Korea are luxury European brands or EV's.
Yes. Tesla isn't exactly Luxury European brands (20.3% for 2026), but the next two are:
The tax varies by type of car and origin but there are several taxes that quickly add up. Including import tarrif, excise tax (for cars with engines over 2 liter), Vat tax, acquisition tax. Can be as low as 5-8% or over 30% Most imported cars are subject to several of these.
most cars are taxed very little. BMWs and Mercedes are cheaper in Korea compared to the US, for example. Hondas and Toyotas are out priced because they are priced as expensive as US, whereas their domestic brands are ~10k cheaper there. Also hyundai/kia parts are about 1/3 price of what we get in the US so no wonder they have 85% market dominance..
Makes sense. I remember reading a news article a few years ago that Nissan Altimas depreciated so quickly in South Korea that some Buy Here Pay Here lots were importing and federalizing them (which is almost never worth doing) because they could buy them for $4k and flip them for $14k after a little work.
From an Australian viewpoint, when you over-inflate prices for a generic vehicle (and Hondas are generic), in a market where you have lost market share, the big companies will take your market share. BYD, Hyundai and Kia are dominating Honda here, so I don't doubt that Honda will end up in trouble in Korea and the rest of Oceania/Asia. Honda need to lift their game to compete, but I doubt they are capable of it.
On paper, it is only about 10% difference on taxes between domestic and imported cars in Korea. But in reality, it costs multiple times the money to maintain an import even though they are essentially equivalents. Thus, if you want an import, buy a luxury one. Honda is not a luxury brand. It costs like luxury brand to maintain. No one buys them.
Next_Tea8596@reddit
They're at the bottom of sales charts in both India and Brazil too, both of which are huge markets. No idea what they're doing/planning.
DrProtic@reddit
I don’t understand Honda’s approach in my country. We only get top spec available, for example CR-V is 50k-52K
Rav4 starts at 40k. Both are hybrids.
Civic starts at 36k EUR
That’s not competitive at all, I barely see them on the road.
Alive_Internet@reddit
This problem also exists in Canada. I don’t know why Honda doesn’t offer a Civic LX Hybrid to compete with the Corolla LE Hybrid. The base Corolla hybrid sells extremely well in Canada, and Honda is really missing out on sales by limiting the hybrid to more expensive trims.
Infamous-Mixture-605@reddit
IIRC, a base Civic starts only a few hundred dollars less than a Corolla hybrid in Canada, while the hybrid Civic is several thousand dollars more than the hybrid Corolla.
Alive_Internet@reddit
That’s exactly the problem. The cheapest Civic hybrid costs way more than the Corolla hybrid because there’s no true base hybrid model. If they plopped the hybrid into the Civic LX, it would be an instant hit.
DrProtic@reddit
If they at least undercut the competitors top trim, but those top trims cost the same.
Low-Umpire236@reddit
They’re everywhere in my country.
brazucadomundo@reddit
They are not far from pulling from Brazil as well and they can't even blame tariffs since they make cars there.
I_KilledKenny_AMA@reddit
Really half baked effort from Honda those last years. No Civic, not nearly enough dealerships to compete with Toyota, no 4x4/AWD offerings for countryside consumers and out-of-touch pricing.
BYD and Geely are smashing Honda sales rn, and deservedly so. Never forget the ZRV fumble. Charging Hybrid AWD prices for an anemic NA 2.0 paired with a gutless CVT.
Mitsubishi might go under as well, since they only really sell the Triton right now, and it also has crap pricing, really poor financing options. People would only buy the Triton as a cheaper Hilux alternative or if it had vastly superior drivetrain offerings.
brazucadomundo@reddit
To be fair with Mitsubishi, the Triton does hold the whole brand well, but one single truck can just carry so much. Honda is just imploding themselves out of sheer stupidity and they are deserving each single customer they are losing to BYD.
I_KilledKenny_AMA@reddit
Triton is great, but Mitsubishi financing is utter crap and it loses more value than the Hilux on resale. It's a better truck, but the cost of ownership kills the deal. If only they compensated the upfront cost...
And the new Gen is ugly (IMHO)
Quitetheoddone@reddit
TL:DR
South Korean cars do well in South Korea.
Just like American cars do well in America, European cars do well in Europe, and Japanese cars do well in Japan.
Farcus_Prime@reddit
South Korea is generally a terrible market for foreign brands. 80-85% of car sales are domestic brands due in part because of 25% tax/tarrifs on foreign cars.
Honda doesn't make any cars that are significantly cheaper or better or more interesting than anything domestic brands have to offer so they struggle to compete for any market share.
The bulk of foreign car sales in South Korea are luxury European brands or EV's.
V8-Turbo-Hybrid@reddit
How bad is Renault and GM there right now ? I remember Renault and GM were considered their domestic automakers, as both formerly were Samsung Motors and Dagwood Motors.
Captain_Alaska@reddit
Is the word you’re looking for Daewoo…?
mentosbreath@reddit
Hey, if someone can drive a giant hotdog around, I want to drive a sandwich.
cherylhernandez@reddit
😅🤣😂
tooltalk01@reddit
You can check that out on https://auto.danawa.com/newcar/?Work=record for 2026 -- see under "domestic brands":
Renault: 10,869 (3.4%)
Chevrolet: 2,540 (0.8%)
Entire_Judge_2988@reddit
Korea has free trade agreements with the US. and EU, so there are no tariffs.
tooltalk01@reddit
Foreign imports account for just over 20% which is not insignificant, especially compared to Japan whose imports stands at 6%. The US is about 40%, but mostly from Canada and Mexico.
No such tariff
Yes. Tesla isn't exactly Luxury European brands (20.3% for 2026), but the next two are:
#1 Tesla (25.5% of all imports)
#2 BMW (23.6%)
#3 Mercedes Benz (19.3%)
Farcus_Prime@reddit
The tax varies by type of car and origin but there are several taxes that quickly add up. Including import tarrif, excise tax (for cars with engines over 2 liter), Vat tax, acquisition tax. Can be as low as 5-8% or over 30% Most imported cars are subject to several of these.
CanLongjumping9360@reddit
This is also fake news. South Korea's automobile tariffs on the EU and the US are at the 5% level.
fobbyk@reddit
most cars are taxed very little. BMWs and Mercedes are cheaper in Korea compared to the US, for example. Hondas and Toyotas are out priced because they are priced as expensive as US, whereas their domestic brands are ~10k cheaper there. Also hyundai/kia parts are about 1/3 price of what we get in the US so no wonder they have 85% market dominance..
PastPalpitationCry@reddit
Wonder how thats working for them
PotatoGamerXxXx@reddit
Sucks for consumer, but really well for local brand.
PastPalpitationCry@reddit
Well not for the consumers that work for said car brand.
AwesomeBantha@reddit
Makes sense. I remember reading a news article a few years ago that Nissan Altimas depreciated so quickly in South Korea that some Buy Here Pay Here lots were importing and federalizing them (which is almost never worth doing) because they could buy them for $4k and flip them for $14k after a little work.
xemnas103@reddit
It kind crazy to hear how Honda seems to be struggling in a lot places while Hyundai and Kia seems to be thriving.
Setanta68@reddit
From an Australian viewpoint, when you over-inflate prices for a generic vehicle (and Hondas are generic), in a market where you have lost market share, the big companies will take your market share. BYD, Hyundai and Kia are dominating Honda here, so I don't doubt that Honda will end up in trouble in Korea and the rest of Oceania/Asia. Honda need to lift their game to compete, but I doubt they are capable of it.
RT023@reddit
Isn’t this old news?
Purrchil@reddit
Besides Toyota the Japanese brands are facing a tough time I think.
Media is always talking about European brands that suffer, but my personal opinion os that Japanese brands will suffer much more.
costafilh0@reddit
Bring the NSX and the S2000 back, and don't make them sh1t like you did with the Prelude.
Make an off road suv.
Done! Problem solved.
SavageryRox@reddit
You'd do a better job leading an automotive brand than Tavares led FCA. /s
V8-Turbo-Hybrid@reddit
Nothing new to hear Japanese automakers suffering in Korea. Nissan is already no more selling car there.
Only Toyota can sell their cars there, as they’re huge enough to operate this market.
DDz1818@reddit
On paper, it is only about 10% difference on taxes between domestic and imported cars in Korea. But in reality, it costs multiple times the money to maintain an import even though they are essentially equivalents. Thus, if you want an import, buy a luxury one. Honda is not a luxury brand. It costs like luxury brand to maintain. No one buys them.