Domestically Produced Cars Cost 33.79 Mil. Won on Average
Market research firm Consumer Insight said on Jan. 5 that the average purchase prices of domestically manufactured and imported cars were 33.79 million won and 68.28 million won in 2020, respectively. The latter has been approximately double the former since 2013.
Meanwhile, the former increased 28.8 percent in seven years while the latter increased 19.8 percent during the same period.
The average purchase price of domestically manufactured cars has continued to rise since 2013. That of imported cars, in contrast, began to rise in 2017. In 2016, the price fell 1.5 million won with regard to recalls, exhaust gas manipulation, etc.
The average discount of domestically manufactured cars decreased from 1.04 million won (4 percent) to 0.98 million won (2.9 percent) from 2013 to 2020. On the other hand, that of imported cars increased from 3.19 million won (5.6 percent) to 3.9 million won (5.7 percent).
The price increase on the part of the domestic products has to do with an increase in the ratio of larger and more expensive cars. Specifically, the ratio of larger sedans, SUVs and pickup trucks jumped from 19 percent to 49.6 percent in seven years while the ratio of the same type of imported cars edged down from 39.7 percent to 39.6 percent.
The bigger discount on the part of imported cars is because of different supply and demand structures. Domestic automakers can adjust supply in their home market whereas foreign brands in the same market sell their products after prior purchase and, as such, cannot but rely on discount depending on stock status.