As Electric Vehicles Get Cheaper, the Trend Shifts... People in Their 20s Lead in New Car Purchase Growth

New Electric Vehicle Purchases Triple Year-on-Year
Driven by High Oil Prices and Price Reductions

In the first quarter of this year, people in their 20s recorded the largest increase in new car purchases in the domestic automobile market compared to the previous year. This contrasts with the decline that had been seen each year due to rising vehicle prices and the spread of a sharing culture. In particular, analysts note that government subsidies and aggressive pricing strategies from companies like Tesla and BYD have especially boosted electric vehicle purchases among people in their 20s.

According to Kaizyu Data Lab on April 12, the number of new car registrations by those in their 20s (passenger vehicles only) was 20,356 in the first quarter of this year, a 35.7% increase compared to the same period last year. This is the highest growth rate among all age groups. Their share of total registrations was 7.5%. This is a sharp contrast to last year, when the new car registration share for those in their 20s fell to the lowest level in the past decade at 5.6%.

On the other hand, the number of new car registrations by those in their 60s and 70s, which had been increasing every year, was 44,064 and 9,585 respectively. These figures represent decreases of 12.6% and 23.8% compared to the same period last year.

Industry sources believe that the surge in new car registrations among people in their 20s is closely linked to a sharp rise in electric vehicle registrations. It is analyzed that people in their 20s, who had previously hesitated to buy cars due to high prices, purchased large numbers of electric vehicles thanks to subsidies and price cuts that lowered the entry barrier.

Kia EV3

In the first quarter of this year, the number of electric vehicle registrations by people in their 20s (passenger vehicles only) reached 4,605, which is more than three times last year's first-quarter figure of 1,402. Electric vehicles accounted for 22.6% of new cars purchased by people in their 20s, up 13.3 percentage points from the same period last year. As a result, total new electric vehicle registrations (including both passenger and commercial vehicles) in the first quarter of this year soared to 83,529, a sharp increase of 149.5% compared to the same period last year.

The impact of electric vehicle price reductions is also evident in the sales rankings by car model. Among new electric vehicles registered by people in their 20s (passenger vehicles only), the Tesla Model Y (863 units) and Kia EV3 (751 units) ranked 7th and 9th in sales, respectively. Both models saw their prices reduced by up to 10 million won since the beginning of this year. Industry insiders expect that, with oil prices rising due to the ongoing conflict between the United States and Iran, the preference for electric vehicles—including among people in their 20s—will likely continue for the foreseeable future.

This content was produced with the assistance of AI translation services.