Sales of Imported Cars Decline Further
05 September, 2019
For the first time in years, sales of imported cars in Korea are declining.
According to the Korea Automobile Importers and Distributors Association on Wednesday, sales of imported cars last month fell 5.6 percent compared to the same period of 2018 to 18,122 vehicles, while cumulative sales until August fell 18.3 percent to 146,889.
One industry insider said, "Tougher environmental regulations, a boycott of Japanese cars and the economic slump have taken their toll."
Even until the first half of last year, their sales had been rising steeply to account for 18 percent of total car sales here, prompting industry watchers to forecast that they would reach 20 percent soon. But a spate of engine fires in BMWs and other factors caused their proportion to fall to 15 percent in the first eight months of this year.
Tougher emission standards have caused problems for many foreign automakers trying to flog their diesel cars here. Then Koreans started boycotting Japanese cars in July. As a result, Toyota's sales here fell 59 percent, while Honda's dropped 87 percent, so only 1,398 Japanese cars were sold here last month, down 57 percent on-year.
Nissan, which planned to roll out its best-selling Altima sedan in Korea in the second half of this year, has suffered a setback, while Honda was stumped just as its newly appointed president here launched an aggressive marketing campaign.
Other foreign automakers are also feeling the pinch. Ford's Korean sales have fallen 64 percent and Land Rover's 56 percent. One staffer at a foreign automaker here said, "The main reason for declining sales is either a supply shortage due to emission certification issues or a slow economy, plus waning demand for high-end imports."
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