Imports have seen a decline in sales amid sluggish economic conditions.
According to the Korea Automobile Importers & Distributors Association, the sales volume of imported cars in September stood at 22,565 units, marking a slight decrease of 3.4% compared to 23,350 units in the previous month, and a drop of 5.7% from 23,928 units in the same month last year. Cumulative sales up to September this year reached 197,742 units, a decrease of 1.2% compared to 200,210 units during the same period last year.
In Gyeonggi Province, where imports are most frequently sold, sales dropped to 4,942 units in September, down 6.4% from 5,280 units the previous month. In Incheon, the number stood at 3,951 units, a decrease of 1.4%, while Seoul recorded 3,385 units, down 6.6% from 3,628 units. This indicates a widespread decline in imported car sales in the Greater Seoul area, a significant sales hub, suggesting the onset of a sales slump in conjunction with the economic downturn.
Even luxury car showrooms in Gangnam, known as a hub for imports, are not exceptions. A sales manager at a showroom pointed out, “Customers in major affluent neighborhoods in Seoul are tightening their wallets due to the economic downturn, starting from Gangnam, where sales have significantly declined.”
A sales agent from a luxury dealer in Gangnam also noted, “Due to high interest rates, financial access for primary customers of imported cars is blocked, leading customers who typically bought vehicles on a 3- or 5-year lease to postpone their purchases. ” There are some sales agents who haven’t recorded any sales for an entire month,” he shared.
Dealerships also find themselves in challenging situations. A marketing employee from one of South Korea’s prominent luxury brand dealerships stressed, “Even with various promotions, it feels futile as inventory piles up,” adding, “We are corporeally experiencing how difficult the domestic economy is. “
By Lee Sang-jin daedusj@autodiary.kr