Sales of imported vehicles in South Korea continued to fall sharply in July, by 24% year-on-year to 15,730 units from 20,707 units a year earlier, according to the Korea Automobile Importers and Distributors Association (KAIDA).

Month-on-month the decline was even sharper, with import sales falling by almost 33%, with sales of Volkswagen group vehicles in free-fall in the wake of the emissions test scandal.

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Volkswagen sales fell by almost 77% year-on-year to 425 units last month, while Audi sales were more than 42% lower at 2,638 units, according to the KAIDA data.

The domestic market was also much weaker last month, with the country's five main automakers reporting a combined sales decline of almost 11% year-on-year to 121,144 units after the government allowed the sales tax discount to expire at the end of June.

In the first seven months of the year, total import sales fell by 5.7% to 132,479 units.

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