The Korea Herald reports that import brands are gaining sales in the South Korean marketplace as product offerings expand.
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The newspaper points out that since Korea first opened its market to imported vehicles, most local buyers of foreign-made cars have been deep-pocketed consumers with a preference for luxury brands. And so far, large premium-brand vehicles with a price tag of 50 million won ($42,590) or more account for around 80 percent of total sales of imported cars, and the top-three best-selling brands are Lexus, BMW and Mercedez-Benz.
But the report says that the trend has been showing signs of changing since last year, as a number of foreign carmakers are offering far less expensive vehicles with smaller engine sizes.
Ford Motor Sales & Service Korea, a local sales unit of Ford Motor Co., has recently launched the Mondeo 2.5 sedan with a sticker price of 38.5 million won, as part of its plan to expand its market share in the entry-car segment. It is also offering the smaller Mondeo 2.0 model, which sells at around 30 million won.
“The Mondeo targets people in their 30s and 40s engaged in professional occupations. Women are also our major customers,” a Ford Korea official told the Korea Herald. He added that the company aims to sell 500 units this year.
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By GlobalDataAccording to the Korea Automobile Importers and Distributors Association, 11.5 percent of total imported vehicles sold in the domestic market carried a sticker price of 40 million won or less, compared with 10.9 percent a year earlier.
“The price range is affordable to many middle-class Koreans,” said an official at the association.
Last year, Hanbul Motor Co. introduced to Korea the Peugeot 206 Coupe Convertible. Japan’s Honda Motor Co. also plans to enter the local market with its Accord sedans, after setting up a local subsidiary last year.
“The entry of Honda Accord will likely be a catalyst for the expansion of the imported car market in Korea,” said an official at the auto importers association, in remarks reported by the Herald.
