Japan's Honda to stop selling cars in South Korea at end-2026

Honda will cease automobile sales operations in South Korea at the end of 2026, citing a tough local market dominated by domestic brands and aggressive Chinese rivals. The move affects a small foothold — Honda sold just under 2,000 cars in South Korea last year (down over 20% y/y) — but underscores wider weakness: Honda’s China retail sales fell to about 646,000 vehicles in 2025, down ~60% from five years earlier, and the company plans at least one joint-venture plant shutdown in China. The withdrawal highlights competitive pressures on Japanese automakers and could be a modest negative for the Japan 225 index by signaling earnings and growth headwinds in a key sector, particularly autos and suppliers sensitive to Honda’s regional footprint.