Mercedes-Benz, BMW Expanding Presence in Korea
The number of imported car brands that join the 10,000 unit club is expected to be cut in half in 2020. If the current trend is maintained, two German brands -- Mercedes-Benz and BMW -- will further solidify their positions.
According to the Korea Automobile Importers and Distributors Association (KAIDA), more than half of the 25 foreign car brands registered with the association saw their sales drop in the first quarter of in 2020 compared with a year ago. Yet total sales of imported cars in Korea in the first quarter increased 4.8 percent to 54,669 units, meaning that sales were lopsided toward some companies.
In fact, Mercedes-Benz and BMW accounted for about half of imported car sales in the first quarter. In the first quarter of 2019, the two companies accounted for 42.01 percent, with Mercedes-Benz taking up 26.55 percent and BMW 15.46 percent. Yet their shares rose to 28.17 percent and 20.73 percent, respectively, in 2020.
Mercedes-Benz and BMW already broke into the 10,000-unit club in the first quarter of 2020. The two carmakers are expected to stage a fierce sales race in Korea in 2020. Before 2019, Mercedes-Benz took the top spot in the imported car market in Korea, setting a new sales record every year for four consecutive years from 2016. BMW is aiming to reclaim the honor from its rival in 2020.
Eight imported car brands sold more than 10,000 units in Korea in 2019. Jeep joined the club in 2019, the first time that Fiat Chrysler Automobile (FCA) Korea entered the Korean market 27 years ago. Mini, a compact car brand of BMW Group, reached the 10.000-unit mark in 15 years since making a foray into Korea. Other than that, Lexus, Audi, Toyota and Volvo joined the 10,000-unit club.