The domestic used-car market is regaining typical stability after a period of steep price declines. This comes as the decline in June used-car prices is expected to narrow compared with last month. With high fuel prices reviving demand for electric vehicles, their prices are rebounding and are expected to lead a market recovery.

K Car, the largest directly managed used-car platform in Korea, analyzed June prices for about 740 models launched within the past 10 years and projected declines of 0.9% for domestic brands and 1.3% for imports month on month. Compared with declines of 1.8% for domestic cars and 2.8% for imports last month, the projected drops are about half as large.

The most notable part of this outlook is the turnaround to rising prices for electric vehicles. After a 0.7% drop last month, the average EV price has shifted to a 0.2% increase in June. This reflects more customers seeking EVs, which help reduce running costs as fuel prices rise. Demand is concentrating particularly on value models in the 20 million to 30 million won range.

By model, the BYD ‘ATTO 3’ recorded the highest increase at 6.2%. It was followed by the Tesla ‘Model 3 Highland’ and the Kia ‘The New Bongo Ⅲ EV Cargo’, up 3.7% each. The Kia ‘EV6’ rose 3.3%, the Genesis ‘G80 Electrified’ 3.0%, the Kia ‘The New Ray EV’ 2.6%, and the Hyundai ‘Casper Electric’ 2.5%.

The domestic passenger-car market is also finding stability as overall declines ease. Major volume models such as the Hyundai ‘Sonata The Edge’ (26.48 million won), the Kia ‘The New Seltos’ (21.91 million won), and the Kia ‘The New Sorento 4th generation’ (34.35 million won) maintained the level of the previous month, successfully defending prices.

In contrast, RVs and large SUVs, whose values had been elevated last year due to stronger export demand, continue to fall. The Kia ‘Mohave the Master’ plunged 5.9%; the Hyundai ‘The All-new Palisade’ dropped 4.5%; the Kia ‘The New Carnival 4th generation’ 3.9%; and the ‘Carnival 4th generation’ 3.7%, posting notable declines. For consumers who prefer large vehicles, the burden of purchase is gradually easing.

The imported-car market also showed an overall stable trend, but some high-priced premium SUVs remained weak. The BMW ‘X3(G01)’ fell sharply by 6.9%, with the ‘X4(G02)’ down 3.5%, the ‘X5(G05)’ down 3.4%, and the Mercedes-Benz ‘GLS-Class X167’ down 2.8%.

Cho Eun-hyung, an analyst on K Car PM team, said, “For both domestic and imported cars, the month-over-month decline has narrowed, confirming that the market has moved past the sharp downturn and is entering a stable phase,” and added, “Average EV prices have turned upward, and prices for key passenger models are also stabilizing.”