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Volkswagen Makes No Sale Last Month for First Time in 11 Years of Business in S. Korea
Zero Sales
Volkswagen Makes No Sale Last Month for First Time in 11 Years of Business in S. Korea
  • By Jung Min-hee
  • December 7, 2016, 02:30
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Volkswagen Korea hadn’t sold any car last month for the first time in 11 years after starting business in Korea owing to its running out of stock to sell.
Volkswagen Korea hadn’t sold any car last month for the first time in 11 years after starting business in Korea owing to its running out of stock to sell.

 

Volkswagen Korea hadn’t sold any car last month for the first time in 11 years after starting business in Korea. This was because it ran out of stock to sell as the South Korean government banned to sell and cancelled the certification for most vehicles made by the German group after the diesel gate scandal.

According to Korea Automobile Importers and Distribution Association (KAIDA) on December 6, the overall sales of import cars last month stood at 19,361 units, down 6.1 percent from the previous month and 15.8 percent from a year ago. The most notable part is that Volkswagen hadn’t sold any car last month, along with super high-end brands like Bentley and Lamborghini. This is the first time after Volkswagen established its local corporation in Korea in January 20015. Sales of Volkswagen in October dropped to two-digits of 30 units, backfired by cheating on emissions tests. Previously, the Ministry of Environment banned the sale of 80 Audi Volkswagen models so the company was able to sell just two of its models – the Touareg Diesel and the CC TSI midsize sedan. However, they too ran out of stock after October so the company has no car to sell now.

Mercedez Benz Korea has ranked first in terms of sales among imported car brands for five months in a row since July, but its sales decreased by more than 10 percent, or 676 units, to 5,724 units from 6,400 units in the previous month. This was largely due to the fact that the supply of the E-Class cannot meet the demand. Among total imported car models, the Mercedes-Benz E-Class sedans ranked first and second in terms of sales in October and took first place again last month, becoming the most popular cars in Korea. 

The sale ratio of diesel cars also fell sharply last month. It dropped by 19.8 percent point from 73.3 percent a year earlier to 53.5 percent. The sale ratio of diesel cars from January to November this year fell short of 60 percent with 59.5 percent in terms of cumulative sales. The figure went down by 9.4 percent point from 68.9 percent during the same period last year.

Last month's best-selling imported car brand was Mercedes Benz with sales of 5,340 units, followed by BMW with 5,340, Lexus with 1,167, Toyota with 870, Ford with 853, Mini with 792 and Land Rover with 771. Its best-selling car model was the Mercedes Benz E220d with sales of 1,330 units, followed by the BMW 520d with 1,143 and the BMW 520d xDrive with 798.