South Korea Medium and Heavy Duty Truck Market Overview, 2030

South Korea’s medium and heavy-duty truck market has shifted rapidly over the past five years due to decarbonization mandates, domestic innovation, and regional trade pressure. Initially dominated by diesel-powered trucks compliant with Euro 5/6 standards, the market has seen growing investment in battery-electric and hydrogen fuel cell trucks since 2020. Hyundai’s XCIENT Fuel Cell and Daewoo’s electric tipper prototypes marked key launches in this transition. Automated transmissions, predictive maintenance through AI-powered telematics, and ADAS features like lane departure warning and automatic braking are now embedded in many high-end trucks. Government initiatives such as the Green New Deal and Carbon Neutrality Roadmap (2050 target) have accelerated the rollout of zero-emission vehicles (ZEVs), with the Ministry of Environment mandating that 10% of new commercial trucks must be low-emission or electric by 2025. South Korea also set strict particulate and NOx standards under the Clean Air Conservation Act and requires real-driving emissions (RDE) testing for commercial vehicles. The Ministry of Land, Infrastructure and Transport (MOLIT) enforces safety certifications, vehicle recall standards, and chassis approvals, while the Korea Automotive Technology Institute (KATECH) oversees compliance audits and testing. Tax benefits include VAT exemptions and subsidies for electric and hydrogen trucks under the Korea Environment Corporation's low-emission vehicle support scheme. Incentives differ by province Gyeonggi and Busan offer extra subsidies and parking permits for eco-friendly fleet adoption. Compared to Japan and China, South Korea imposes stricter safety features per vehicle and allocates higher grants per unit but has a slower charging and hydrogen infrastructure rollout. Government policies, including procurement quotas for public fleets and trade rules favoring local assembly, directly shape OEM competition and model availability.

According to the research report ""South Korea Medium and Heavy-Duty Truck Market Overview, 2030,"" published by Bonafide Research, the South Korea Medium and Heavy-Duty Truck market is anticipated to grow at more than 4.87% CAGR from 2025 to 2030. Truck manufacturing in the country relies on a combination of domestically sourced steel, lithium-ion batteries, automotive electronics, and powertrain components, with key materials procured from local conglomerates like POSCO, SK Innovation, and LG Chem. The biggest risks in raw material sourcing stem from price volatility in global nickel and lithium markets and dependency on imported rare earths, mainly from China, which are vital for electric propulsion systems. Assembly and production hubs are centered in Ulsan, Gunsan, and Changwon, where Hyundai, Tata Daewoo, and GM Korea operate large-scale truck plants. The parts ecosystem, including chassis, axles, sensors, and hydrogen tanks, is supported by hundreds of Tier-1 and Tier-2 suppliers in South Gyeongsang and North Jeolla provinces. Distribution channels are primarily B2B, through dealership networks, national leasing firms, and procurement platforms operated by fleet integrators. Trade tariffs imposed by the EU and US under anti-dumping clauses have pressured export margins and raised production costs for South Korean heavy trucks. Despite this, demand from Vietnam, the Philippines, and Chile remains strong. Trends such as hydrogen truck subsidies, carbon credit trading for fleets, and digital twin modeling for predictive maintenance have introduced new opportunities for differentiation. Mergers and partnerships, such as Hyundai’s collaboration with Cummins and H2 Mobility partnerships, have enabled scale in zero-emission platforms. Leading players retain dominance through vertical integration, national R&D programs, and exclusive supply contracts with municipal bodies. Startups like EVAR and Reborn Motors, backed by venture capital, are entering with modular EV truck platforms and retrofitting services. Barriers for new entrants include stringent testing by KATRI, compliance with MOLIT certifications, and the capital intensity of hydrogen infrastructure.

Medium-duty trucks are widely used for intra-city logistics, retail supply chains, construction material movement, and small-scale industrial freight. These include models like Hyundai Mighty and Tata Daewoo Maximus M, favored by SMEs and logistics aggregators for their maneuverability, fuel efficiency, and suitability for narrow roads in urban zones like Seoul, Incheon, and Busan. The rise of e-commerce, cold chain expansion, and convenience store restocking has increased demand for medium trucks equipped with customizable cargo bodies and IoT-based fleet monitoring. Government incentives under the Low-Emission Vehicle Subsidy Program have made battery-electric and CNG-based medium-duty trucks more viable in municipal fleets. In contrast, heavy-duty trucks dominate the long-haul, mining, steel, and port logistics segments, connecting major industrial corridors from Ulsan to Gwangyang and across export hubs like Busan Port. Models such as Hyundai Xcient, Tata Daewoo Prima, and MAN heavy trucks are deployed for transporting containers, bulk chemicals, construction aggregates, and automotive parts. These trucks often feature automated manual transmission (AMT), high-torque engines, onboard diagnostics, and are increasingly adopting hydrogen fuel cell systems. Hyundai's XCIENT Fuel Cell trucks have already entered operation under public-private partnerships. Fleet buyers in this category prioritize durability, lower total cost of ownership, and driver comfort, supported by nationwide service infrastructure. The demand for heavy-duty trucks also rises from government-funded infrastructure projects under the Korean New Deal and military logistics.

Internal combustion engine (ICE) trucks remain the most dominant propulsion choice, especially diesel-powered vehicles compliant with Euro 6 and Korea’s stricter Tier 4 emission norms. They are extensively used across construction, logistics, manufacturing, and cross-border freight due to their reliability, widespread fueling infrastructure, and established service networks. OEMs like Hyundai, Tata Daewoo, and Volvo offer a wide portfolio of ICE trucks with high horsepower, improved fuel efficiency, and automated transmissions to meet diverse freight needs. However, the country is rapidly transitioning towards electric propulsion in response to the government's carbon neutrality roadmap. Electric trucks have gained traction in urban delivery, waste collection, and municipal services. Hyundai’s Mighty EV and upcoming mass rollout of XCIENT Fuel Cell trucks highlight this shift. Supported by subsidies from the Ministry of Environment, electric medium and heavy-duty trucks benefit from purchase incentives, toll exemptions, and operating cost reductions. The market is also seeing early adoption of hydrogen fuel cell propulsion, led by Hyundai's deployment of hydrogen trucks in pilot programs with CJ Logistics and GS Caltex. These are particularly aimed at long-haul and heavy-payload applications due to their faster refueling and longer range. Other propulsion types, such as CNG and hybrid systems, are used on a smaller scale, mainly in public fleets or specific industrial hubs like Ulsan and Gyeonggi. Infrastructure development remains a challenge, with electric charging and hydrogen refueling stations still concentrated in select metropolitan areas. The overall propulsion mix is undergoing a gradual but government-driven transition, with the Green Transport Act and Clean Logistics Support Program pushing OEMs to diversify offerings and fleet operators to adopt cleaner technologies, backed by R&D funding and regulatory support.

Rigid trucks are widely deployed across urban logistics, postal services, FMCG distribution, and mid-range freight movement. These trucks, typically in the 5 to 12-tonne range, are preferred in metropolitan areas like Seoul and Incheon due to their better maneuverability, compliance with urban emission zones, and compatibility with automated loading bays. Major players like Hyundai and Tata Daewoo offer rigid models with reefer, box, curtain-side, and cargo variants tailored for delivery fleets and retail wholesalers. Tractor-trailers or articulated trucks are critical for long-haul applications, container transport, and bulk commodity shipments. These vehicles dominate industrial corridors connecting Busan Port, Ulsan’s petrochemical complexes, and Gwangyang’s steel terminals. Used heavily by 3PLs and exporters, tractor-trailers are typically equipped with electronic braking systems (EBS), anti-roll stability, and fleet telematics to support high payloads and long-distance operations. Hyundai XCIENT, MAN TGX, and imported Scania units serve this segment. Tipper and dump trucks support mining, earthmoving, tunneling, and mega infrastructure projects under national programs like the Korean New Deal. They operate in mountainous regions and industrial zones like Gangwon, South Jeolla, and Chungcheong. These trucks require high ground clearance, reinforced suspension, and rugged body configurations to handle rough terrain. The Other category includes highly customized body types such as fuel tankers, cement mixers, refuse collection trucks, aerial work platforms, and fire trucks. These serve municipal corporations, utilities, and emergency response departments under local government procurement contracts. Many are manufactured by Korean bodybuilders under partnerships with global OEM chassis suppliers.

The logistics and transportation sector accounts for a substantial portion of truck usage, driven by e-commerce, industrial exports, and port-based shipping activities. Trucks are deployed for line-haul freight across Busan, Incheon, Ulsan, and Gwangyang, with articulated and rigid trucks handling retail distribution, warehouse restocking, and temperature-controlled logistics. Construction and mining operations, supported by public works projects under the Korean New Deal and expressway expansion programs, rely heavily on tipper trucks, cement mixers, and heavy haulers to move raw materials, asphalt, aggregates, and equipment across industrial zones in Gangwon and South Jeolla. The agriculture and forestry sector uses medium-duty rigid trucks for transporting produce, livestock, fertilizers, and timber, particularly in Gyeongbuk, Chungnam, and Jeju, where agro-based activities are high. Customized bodies and refrigerated containers are used for fresh food and livestock transport, especially during harvest seasons. In the utility and municipal segment, government contracts fund the deployment of refuse collection vehicles, water tankers, aerial platforms, and firefighting trucks operated by local municipalities in Seoul, Daejeon, and Busan. These vehicles must meet specific emission and safety standards under the Green Vehicle Deployment Act, and many are now being converted to electric or hydrogen fuel cell formats under public-private fleet conversion programs. Other end users include manufacturing plants, military logistics, postal services, and rental fleet operators, all of whom use specialized trucks such as mobile workshops, fuel carriers, and armored transport. Many of these vehicles are built on standardized platforms and customized locally. Demand across end users is influenced by regulatory compliance, fuel efficiency mandates, and fleet electrification targets set by the Ministry of Environment, with many sectors now integrating predictive maintenance and telematics for asset tracking and operational efficiency. 

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Medium and Heavy Duty Truck Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Class
• Medium (3.5 to 16 Tonnes)
• Heavy (16 Tonnes and Above)

By Propulsion
• ICE
• Electric
• Other

By Body Type
• Rigid Trucks
• Tractor-Trailers / Articulated Truck
• Tipper / Dump Trucks
• Other

By end users
• Logistic transportation
• Construction and Mining
• Agriculture and Forestry
• Utility And Municipal
• Other Show more