The automotive market is feeling the chill. Popular models are also going on discount sales.
The imported car market, which enjoyed a boom, is facing serious challenges. Most imported car brands have seen a decline in sales. Porsche recorded 9,690 units sold by October this year, marking a 38% growth compared to 7,015 units during the same period last year. They are just shy of joining the 10,000-unit club since the establishment of Porsche Korea. However, a closer look reveals that the situation is not as rosy as it seems. Sales fell from 1,111 units in August to 695 in September and then stabilized at 705 units in October.
Volvo, which has been enjoying significant popularity in the market, reported a cumulative sales figure of 13,770 units this year, showing a 37% increase compared to 10,030 units in the same period last year. However, Volvo’s sales dropped from 1,555 units in September to 1,263 units in October, a decrease of 18.8%.
Both Porsche and Volvo had long waiting periods for delivery, but that is no longer the case as order backlogs have been resolved.
The domestic car market is facing similar issues. Hyundai’s 7th generation Grandeur gained immense popularity since its launch last year. However, the Grandeur is now on discount sales. Discounts are available up to 5.2 million KRW for internal combustion engine models and up to 5.4 million KRW for hybrid models. This is a staggering discount of 10% based on the Grandeur hybrid Calligraphy model priced at 53.04 million KRW.
Compact cars and electric vehicles are not exceptions either. The Kona offers discounts of up to 3.55 million KRW, while the Ioniq 5 and Ioniq 6 have maximum discounts of 6.4 million KRW.
As even popular models that consumers were queuing up for experience declining sales, tension in the automotive market is growing.
Lee Sang-jin daedusj@autodiary.kr