Decline in Imported Car Sales in South Korea in July Due to Tax Cuts and Supply Issues

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In July, South Korea experienced a 1.3 percent drop in imported car sales from the previous year, according to the Korea Automobile Importers & Distributors Association (KAIDA). This decrease was attributed to the end of tax cuts and a lack of product availability in certain brands.

The top three selling models in July were the BMW 520 sedan, Mercedes-Benz E 250 sedan, and Lexus ES300h sedan.

The three German brands, Volkswagen Group Korea, BMW Group Korea, and Mercedes-Benz Korea, sold a combined 14,977 units, a 3.8 percent increase from July of the previous year. German cars accounted for 71 percent of imported cars sold in the country last month, a rise from 67 percent in the prior year.

The three Japanese brands, Honda Motor Co., Toyota Motor Corp., and Lexus, sold a total of 1,741 units last month, a 19 percent increase from the same month in the previous year.

Imported cars made up 18.97 percent of the South Korean passenger vehicle market in June, a slight increase from 18.02 percent a year ago. The market share for July has yet to be released, according to KAIDA.

kyongae.choi@yna.co.kr
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