Sales of imported light passenger vehicles in South Korea increased by 4% to 21,977 units in July 2024 from 21,138 units a year earlier, according to registration data released by the Korea Automobile Importers & Distributors Association (Kaida).
Overall demand for new vehicles in South Korea had weakened this year with domestic sales also slowing by 2% to 112,468 units last month and by 11% to 781,491 units year to date (YTD). The country’s heavily indebted consumers had reined in spending on big items and have become more cost conscious. This had affected sales of battery electric vehicles (BEVs) in particular, as had rising concerns over battery safety.
Go deeper with GlobalData
Sales of imported light passenger vehicles fell by 3% to 147,629 units in the first seven months of 2024 from 151,827 units in the same period of last year with overall volume supported by the inclusion of Tesla’s 20,060 sales YTD compared with none last year.
The share of German owned brands had fallen to below 64% of total import sales as a result, according to Kaida’s latest data, despite the recent launch of important new models by Mercedes and BMW.
BMW sales dropped by 6% to 41,510 units YTD, despite the recent launch of the new 5-series sedan, while Mini YTD sales were also down by 6% at 4,927 units.
Volkswagen reported a 16% decline to 3,711 units while Porsche sales dropped by 36% to 4,575 units and Audi sales plunged 59% to 4,524 units.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMercedes-Benz saw its sales fall by 16% to 34,380 units YTD, despite the launch of the new E-series sedan earlier this year, while Volvo sales were 13% lower at 8,596 units.
Toyota reported a 17% sales increase to 5,381 units, helped by the recent introduction of the RAV4 PHEV and the Crown hybrid crossover, while Lexus sales were down by 6% at 7,529 units following strong growth last year.
Importers currently account for 20% of BEV sales in South Korea with brands such as Mercedes-Benz, BMW, Porsche and Volvo investing heavily in local charging networks. They were set to be joined by BYD later this year. Growing concerns over high prices, as well as safety following a suspected “spontaneous” BEV battery fire in an apartment complex last week, was expected to result in significant discounting of BEVs by dealers.
