Industry officials in Korea have said there are signs that the tax cut for cars that took effect on May 1 is stimulating market demand.
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The Korea Herald reported that the individual consumption, acquisition and registration taxes for new vehicles bought to replace automobiles registered before December 31, 1999 have been reduced by 70% from May 1 until the end of the year.
According to industry officials, daily sales shot up on Monday and Wednesday when showrooms opened for business after the three-day weekend and May 5 Children’s Day.
“We don’t have the figures for the whole country but the number of people visiting and buying vehicles at some of our main showrooms has doubled in comparison to other months,” a Hyundai Kia official told the newspaper.
Other automakers also report that sales are up in the first week of the month.
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By GlobalDataIn addition to the tax cut, carmakers are offering additional discounts for people replacing old vehicles, the report added.
