Hyundai Motor Group (HMG) plans to enter the South Korean used car market in the fourth quarter of 2023, according to local reports citing a company insider, to establish new areas of profitable growth.
Until recently, the country’s used car sector had been off limits to major vehicle manufacturers in order to protect smaller dealers but regulations were recently relaxed following a change of heart by the ministry of SMEs and startups.
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The country’s used vehicle market was estimated to be worth KRW30trn (US$23bn) per year, double the estimated size of the new car market.
HMG was expected to begin to establish used car dealerships for its Hyundai, Genesis and Kia brands from October, according to a company insider who said: “Large scale marketing efforts are in the works for an October launch.”
Following the change of legislation in early 2022, HMG said it would enter the country’s used vehicle market. At the time the company said it would focus on high quality, certified used vehicles under five years of age and with less than 100,000km (62,000 miles) on the odometer.
The company said the vehicles would undergo 200 rigorous quality tests before being put on sale.
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By GlobalDataHyundai also said it would limit its market share to 4.1% of the overall used vehicle market.
