Import Cars Less So
The growth of expensive imported cars in Korea, priced at 40 million won (US$37,977) or higher specifically, has come to a standstill. In contrast, Korean luxury cars have regained a 30 percent market share in the segment for the first time in four years.
According to the Korea Automobile Manufacturers Association (KAMA) and the Korea Automobile Importers & Distributors Association (KAIDA), Korean carmakers sold 47,119 sedans and SUVs in the segment during the first eight months of this year to record a market share of 32.9 percent. Their combined share in the luxury sedan segment had dropped from 51.16 percent to 44.47 percent between 2010 and 2011 and then to 28.58 percent in 2013.
Meanwhile, imported cars have been on a roll in the same segment led mainly by German automakers such as Mercedes Benz, BMW, Audi and Volkswagen. At present, 74.5 percent of the vehicles they are selling are within the price range. However, the percentage is just 6 percent for Korean automakers.
The Korean companies’ recovery can be attributed mostly to the second-generation Hyundai Genesis, which made its debut in November last year. The sales volume reached 25,543 units during the eight-month period to more than triple that of a year earlier, and set a new January-to-August high. For reference, the first-generation Genesis had been chosen by 12,147 customers in Korea between January and August in 2013.