New data reveals a significant trend: the purchase rate of new passenger cars among South Koreans in their 20s and 30s has plummeted to a decade low in 2025. This shift highlights changing consumer preferences and economic factors impacting younger generations.
According to Carisyou, an auto industry data tracker, new car registrations among individuals in their 20s totaled 61,962 in 2025, representing only 5.6% of all new car registrations for the year. This figure marks a substantial decrease from 8.8% in 2016, showcasing a consistent downward trend over the past decade.
The data further indicates that new car registrations for those in their 30s reached 209,749 last year, accounting for 19% of the total. This percentage represents a 6.9 percentage point drop over the last ten years, also reaching its lowest point in a decade.
Conversely, older demographics are showing increased interest in new car purchases. Individuals in their 60s registered 204,294 new passenger cars in 2025, comprising 18.5% of the market, while those in their 70s registered 50,861 units, or 4.6%.
Industry experts attribute this decline in new car purchases among younger consumers to several factors, including rising costs associated with car ownership and the increasing popularity of car rental and ride-sharing services facilitated by mobile apps.
“The growing car-sharing culture enabled by online platforms is reducing the perceived need for car ownership among individuals in their 20s and 30s,” explained Kim Pil-soo, an automotive professor at Daelim University. This suggests a move towards more flexible and affordable transportation options for younger generations in South Korea.
