Tesla posted a record sales month in South Korea in March, selling 11,130 vehicles — a fourfold increase from the 2,591 units registered a year ago.
The result brought first-quarter deliveries to 20,964 units — the company’s second-best quarter in the country, trailing only the third quarter of 2025.
Tesla currently offers the Model 3 sedan and Model Y SUV in South Korea, with prices starting at 41,990,000 won ($27,700) and 49,990,000 won ($33,000), respectively.
The Standard versions of both models, available in the US and Europe, are not sold in the country.
Earlier this year, regulatory filings revealed that Tesla is preparing to introduce the Model Y L in South Korea.
The model — which first debuted in China last summer — has begun expanding into international markets this year, with launches in Thailand and Malaysia.
The company also debuted the Cybertruck pick-up in South Korea last year, priced from 145,000,000 won ($95,600).
2025 Figures
The first quarter of 2025 saw slower vehicle registrations for Tesla, as the company transitioned production from the previous Model Y to the refreshed version.
The model is shipped to South Korea from Giga Shanghai, alongside the Model 3 sedan. In China, deliveries of the updated model began in March.
After delivering fewer than 3,000 units per month in South Korea during the first four months of the year, Tesla more than doubled its monthly volume to over 6,000 units.
The company surpassed other imported brands in the market across several months of 2025.
It is competing directly with BMW and Mercedes-Benz — which, unlike Tesla, also sell internal combustion engine (ICE) and hybrid models.
Tesla registered 7,537 vehicles in July, 7,974 in August and 9,099 in September, achieving a market share above 25%.
Sales slowed in the final three months of 2025, dropping to between 4,000 and 6,000 units per month.
Market share held mostly steady until December, when it fell to 15%.
For the full year, Tesla sold 59,916 vehicles in South Korea, finishing 2025 with a 19.5% share of the imported-vehicle market.
The figures doubled year over year.
EV Subsidies
South Korea aims to have 70% of vehicles on the road be zero-emission by 2035.
In August, the government was already mulling raising incentives on electric vehicle purchases.
South Korea raised its maximum EV purchase subsidy to 6.8 million won ($4,700) for 2026, up from 5.8 million won ($4,000) the previous year.
The national subsidy budget increased 20% to 936 billion won ($658 million), according to the Ministry of Climate, Energy, and Environment.
The price cap for subsidy eligibility remains at 53 million won ($36,700) this year but will drop to 50 million won ($34,600) in 2027.
The government has also eliminated consumption and acquisition taxes on battery-electric, hybrid, and hydrogen vehicles.
Buyers who scrap or sell an internal combustion engine vehicle when purchasing a new EV can claim an additional 1 million won ($700).
According to the government, the incentives are designed to help the country’s auto industry cope with risks from US tariffs, despite the agreement reached between the two countries.
Local governments are adding their own incentives on top of the national program. In Seoul, EV subsidies can reach up to 7.54 million won ($5,200) per vehicle, with combined national and city-level trade-in bonuses totaling up to 1.3 million won ($900).
Import Quota
Last July, the two countries reached a trade agreement under which the US agreed to lower tariffs on South Korean product imports to 15%, in exchange for the Asian country altering its rules on vehicle imports.
South Korea lifted a 50,000-unit annual cap on US vehicle imports, a move that benefits Tesla and General Motors while drawing criticism from domestic automakers.
As os late last year, vehicles produced in the United States can enter South Korea as long as they meet US safety standards, without having to comply with the country’s domestic regulations.
The decision has drawn criticism from domestic automakers, which struggle to compete with foreign rivals such as Tesla and General Motors.
The competition cited by automakers in South Korea is not (only) focused on sales, but rather on technology and safety.
Traffic safety rules in the US are less strict than those in South Korea — hence why US President Donald Trump has denounced these regulations as “non-trade barriers.”
Additionally, the two countries have very different types of roads, making US vehicles less suitable for South Korea’s narrow and densely packed streets.
The Korean government has said the impact would be “negligible.”
However, as Tesla expands its presence — introducing the large Cybertruck and its Full-Self Driving (FSD) system — local automakers are increasingly concerned.
Cybertruck Gets FSD
Late last year, the Elon Musk-led company began deliveries of the Cybertruck model in South Korea — about three months after orders were opened.
On the same week, its FSD software rolled out in the country, making it the seventh global market to receive it.
It was initially supported on Model S and Model X vehicles only, as they were produced in the United States and, therefore, are not subject to South Korean regulations.
Because the Model 3 and Model Y sold in Korea are imported from Giga Shanghai, additional regulatory requirements are likely delaying their approval.
It’s still uncertain when FSD will become available for these vehicles.
Tesla has since rolled out the software on its Cybertruck model.
Japan
Earlier this week, a local report from Japanese media outlet Nikkei revealed that the company plans to double its directly operated service centers in Japan to more than 30 this year.
A few hours later, CEO Elon Musk reacted to the report on X, stating that “Tesla is making a big investment in Japan with service & Superchargers.”
According to Musk, “many of the parts in Teslas are made in Japan.”
Tesla delivered roughly 10,600 vehicles in Japan last year, up 90% year-over-year and surpassing the previous high of around 5,900 units in 2022.
The company credits a shift from online marketing to in-person dealership sales, alongside incentives for EVs.
Up until March 31, the company offered 0% APR on Model Y and Model 3 purchases.
Additionally, Tesla models benefit from the national subsidy for fully electric vehicles — recently increased from 400,000 yen ($2,500) to 1.3 million yen ($8,100).
China
In China, where the company produces both the Model 3 and Model Y, deliveries jumped in March to 85,670 units — a 23% increase year-over-year.
Sales were disrupted in the first two months of the year due to incentive cuts in January and the Chinese New Year Holiday in February.
The figures reported on Thursday do not distinguish between domestic sales and exports.
The figures will be unveiled later this month by China’s Passenger Car Association (CPCA).
Tesla opened 2026 in China with its most aggressive financing yet — a seven-year ultra-low-interest plan at 0.5% and a five-year zero-interest option across the Model 3, Model Y, and Model Y L.
The company later added an 8,000-yuan ($1,200) insurance subsidy and in-stock discounts.
The promotions were extended twice through the end of the first quarter as delivery wait times collapsed to 1–3 weeks across the full lineup.
Major Chinese competitors matched the financing terms within weeks.
Tesla is scheduled to disclose its quarterly production and delivery figures on Thursday, before the US market opens.
