This year, domestic car manufacturers are entering the certified pre-owned car business one after another. The industry is filled with mixed expectations and concerns. While there are worries about the disruption of the used car ecosystem, there are also hopes for a mutual boost in sales.
Hyundai Motor, which is launching into the certified pre-owned car market this year, has reportedly signed a management contract at the Auto Hub in Yongin, Gyeonggi Province. Hyundai is expected to conduct the merchandising of used cars at the Auto Hub.
Kia and KG Mobility, which recently changed its name, are also expected to begin their pre-owned car businesses this year.
Renault Korea has also initiated a review to enter the used car market, with plans for all domestic brands, except for Chevrolet, to participate.
Contrary to the expectation that demand for mobile platforms like Encar.com or K-Car would drop with manufacturers entering the used car market, mobile used car platforms are welcoming Hyundai’s entry into the market.
An In-sung, CEO of online used car platform Carmus, stated, “We don’t worry much about Hyundai’s foray into the used car sector,” emphasizing that “we just need to do our business well.” He also added, “In the US, where used car transactions are active, the market share of certified pre-owned cars is around 20%,” suggesting that the entry of car manufacturers could stimulate active transactions in the used car market. Additionally, there are hopes that when manufacturers enter the used car business, it can serve as an opportunity to regain consumer trust.
However, there are also voices of concern. A stakeholder in the used car industry expressed worry, stating, “Consumers often choose manufacturers’ certified pre-owned cars even when the price is higher for the same product,” raising concerns about the implications of manufacturers’ entries into the certified pre-owned market.
Lee Sang-jin daedusj@autodiary.kr