We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Honda Shutting Down Car Sales in South Korea for Good?
Read MoreHide Full Article
Key Takeaways
Honda will end automobile sales in South Korea by year-end after operating in the market since 2004.
Honda's car sales fell below 2,000 units last year, down over 20% amid stiff local and Chinese competition.
Honda will continue after-sales support and shift focus to expanding its motorcycle business in the country.
Honda Motor Co., Ltd. (HMC - Free Report) has decided to wind down its automobile sales operations in South Korea by the end of the year as part of efforts to streamline its business structure and sustain mid- and long-term competitiveness.
The company entered the market with motorcycles in 2001 and expanded into car sales in 2004. As of March 2026, it had sold around 108,600 cars and about 420,600 motorcycles in the country. Honda had been offering models like the Accord and CR-V in the market.
However, South Korea remains a relatively small and challenging market, dominated by domestic players like Hyundai Motor Company and Kia Corporation, while competition from Chinese brands has intensified. Honda’s car sales fell to just under 2,000 units last year, marking a decline of more than 20% year over year.
Despite exiting car sales, Honda will continue providing after-sales support, including maintenance, parts and warranty services. The company plans to work closely with dealers to ensure a smooth transition and maintain service stability. Honda will now prioritize its motorcycle business in South Korea, expanding its lineup and enhancing customer experience in the segment.
Besides high competition, Honda is confronting several other headwinds in its global operations, including slower growth in the electrification market, relaxed environmental regulations across multiple countries, a shift away from multilateral free trade amid rising protectionism and increased supply chain vulnerabilities due to broader global sourcing.
The Zacks Consensus Estimate for SMP’s 2026 sales and earnings implies year-over-year growth of 3% and 9.5%, respectively. The EPS estimates for 2026 have decreased 4 cents over the past 60 days.
The Zacks Consensus Estimate for MGA’s 2026 sales and earnings implies year-over-year growth of 2.3% and 19%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 30 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 73.6% and 28.9%, respectively. The EPS estimate for 2026 has improved 15 cents over the past 90 days, while that for 2027 has risen 12 cents over the past 30 days.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Is Honda Shutting Down Car Sales in South Korea for Good?
Key Takeaways
Honda Motor Co., Ltd. (HMC - Free Report) has decided to wind down its automobile sales operations in South Korea by the end of the year as part of efforts to streamline its business structure and sustain mid- and long-term competitiveness.
The company entered the market with motorcycles in 2001 and expanded into car sales in 2004. As of March 2026, it had sold around 108,600 cars and about 420,600 motorcycles in the country. Honda had been offering models like the Accord and CR-V in the market.
However, South Korea remains a relatively small and challenging market, dominated by domestic players like Hyundai Motor Company and Kia Corporation, while competition from Chinese brands has intensified. Honda’s car sales fell to just under 2,000 units last year, marking a decline of more than 20% year over year.
Despite exiting car sales, Honda will continue providing after-sales support, including maintenance, parts and warranty services. The company plans to work closely with dealers to ensure a smooth transition and maintain service stability. Honda will now prioritize its motorcycle business in South Korea, expanding its lineup and enhancing customer experience in the segment.
Besides high competition, Honda is confronting several other headwinds in its global operations, including slower growth in the electrification market, relaxed environmental regulations across multiple countries, a shift away from multilateral free trade amid rising protectionism and increased supply chain vulnerabilities due to broader global sourcing.
Honda’s Zacks Rank & Key Picks
HMC stock currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Standard Motor Products, Inc. (SMP - Free Report) , Magna International (MGA - Free Report) and Geely Automobile (GELHY - Free Report) . While SMP sports a Zacks Rank #1 (Strong Buy), MGA and GELHY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SMP’s 2026 sales and earnings implies year-over-year growth of 3% and 9.5%, respectively. The EPS estimates for 2026 have decreased 4 cents over the past 60 days.
The Zacks Consensus Estimate for MGA’s 2026 sales and earnings implies year-over-year growth of 2.3% and 19%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 30 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 73.6% and 28.9%, respectively. The EPS estimate for 2026 has improved 15 cents over the past 90 days, while that for 2027 has risen 12 cents over the past 30 days.