The winter has come early to the automotive market. Customers are rapidly canceling their orders.
Hyundai’s flagship model, the Grandeur Hybrid, is now being offered with discount conditions of up to 4.1 million KRW. This is unusual for a model that was released less than a year ago in November last year, representing Hyundai’s mainline offering.
Similarly, the large SUV, the Palisade, which is another flagship model from Hyundai, is under exceptional discount conditions. Customers can receive a discount of up to 4.7 million KRW, and the 2023 model can opt for either a 3 million KRW discount or a zero-interest installment plan over 36 months.
Even the relatively affordable Kona Hybrid is available with a maximum discount of 2.45 million KRW.
Kia, benefiting from strong sales of the Sportage and Sorento, is experiencing significantly reduced delivery waiting times. A Kia representative stated, “In the past, popular models had long wait times, but with increasing cancellations, the waiting period has become considerably shorter compared to the past.”
The remaining domestic automakers, KG Mobility, Renault Korea, and General Motors, are focusing on recovering sales through discounts of up to 4 million KRW, zero-interest installments, and long-term low-interest financing options.
The imported car market is not much different.
A symbolic model in the imported car market, the Mercedes-Benz S-Class, has seen its sales drop to 6,454 units by August, down 14.4% from last year’s 7,546 units. As the S-Class sales decline, dealers from Mercedes-Benz are offering discounts ranging from 8 to 10 million KRW. To counteract this, BMW is also providing substantial promotional offers for the 7 Series.
As of now, the automotive market continues to face challenges marked by significant price cuts and promotional offers across various brands, both domestic and imported.
Contact: 이상진 daedusj@autodiary.kr