A market analyst has told just-auto that he expects growth in the South Korean vehicle market to continue in 2021.
South Korean Automakers saw a 6.2% increase in January-November domestic automotive sales and South Korea is set to register over 1.6m domestic vehicle sales in 2020. The country was the among the early COVID-19 hit nations but has also been leading the market recovery.
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, says that despite slower exports demand this year, due to global COVID-19 impacts, domestic vehicle demand has remained strong in 2020 due to a number of factors.
“There are several factors that have been supporting the positive uptick in domestic sales such as the increased need for personal mobility, the availability of incentives on electric vehicles, tax break by the government, aggressive promotion campaigns and the launch of new models, which has substantially fuelled the new vehicle demand,” Agwan maintains.
Agwan says the Korean market could cross 1.6 million units, which would mean highest new vehicle sales total since year 2002.
South Korea’s top five automakers Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co. reported a 6.2% increase in domestic sales in January-November 2020. The companies sold a cumulative 1.47m units in the period.
“At a time when exports, which account major share in Korean automaker sales, are declining, growing domestic demand is a major positive sign for domestic OEMs,” Agwan maintains.
See also: South Korean sales rise 5% in November