U.S. electric vehicle maker Tesla has reached the top position in South Korea’s imported vehicle market for the first time, surpassing traditional internal combustion engine competitors as demand for EVs accelerated.
Data from the Korea Automobile Importers and Distributors Association, cited by The Korea Herald, showed Tesla delivered 20,964 vehicles between January and March 2026, up 335% from a year earlier. The performance placed it ahead of BMW, which sold 19,368 units, and Mercedes-Benz with 15,862 units.
The increase was driven by a surge in March, when deliveries exceeded the combined total from January and February. Earlier in the quarter, Tesla had already delivered 9,834 vehicles in the first two months, nearly four times higher than the same period in 2025.
Strong demand for the Model Y remained a key factor behind the growth, supported by its range, performance and technology features, according to market observers.
Broader market dynamics also contributed to the rise. South Korea finalized its EV subsidy program earlier than usual, confirming incentives in January, which appeared to bring forward consumer purchases into the first quarter.
At the same time, rising global oil prices linked to geopolitical tensions encouraged a shift toward electric vehicles. In March, EVs accounted for 47.8% of imported vehicle sales, surpassing hybrids at 42.9% for the first time.
Tesla’s performance in South Korea comes despite a more challenging global quarter, where deliveries fell short of market expectations and inventory levels increased.
Separately, the company adjusted its product lineup in the country in January, streamlining its offerings and lowering prices on several models. Tesla now sells only the Performance version of the Model 3 in South Korea, removing the Rear-Wheel Drive and Long Range variants from its lineup.