Tesla has achieved a significant milestone in South Korea, becoming the top-selling imported car brand in the country for the first time since entering the market.
According to May 2025 data from the Korea Automobile Importers & Distributors Association (KAIDA), Tesla sold 6,570 vehicles, surpassing perennial favourites Mercedes-Benz (6,415) and BMW (6,405).
When breaking it down by model, the surge in sales was primarily driven by the launch of the new Model Y, which has proven to be popular with Korean consumers, accounting for 6,237, or 94.9% of Tesla’s sales. That total was enough to make it not only the best-selling EV but also the best-selling imported car overall.
And the competition wasn’t even close, as the Model Y’s performance was also more than two and half times more than the next most popular car in South Korea, the Mercedes-Benz E-Class, which accumulated 2,317 sales.
Overall, South Korea’s imported car market grew 16.4% year-over-year in May, with 28,189 vehicles registered. Electric vehicles made up 33.8% of those sales, a 62.2% increase compared to the same period last year. Much of this growth can be credited to Tesla, which now accounts for one in five imported car sales in the country.
This success stands in contrast to Tesla’s recent performance in several European markets, where sales have declined. In Germany, Tesla registrations dropped by a 77% year-over-year in May. Year-to-date, Tesla sales in Germany are down 75%. Similar declines have been recorded in Sweden, Portugal, and Spain.
The European slump has been attributed to a mix of rising competition from local automakers, decreasing government subsidies for EVs, and consumer backlash against CEO Elon Musk’s political involvement.
However, much like in South Korea, the introduction of the new Model Y helped accelerate sales in Australia. In May the company recorded its strongest sales month in Australia in nearly a year.
