Nissan and Infiniti Withdraw from Korean Market... "After-Sales Service Continues Until 2028"

[Asia Economy Reporter Kim Ji-hee] Nissan Korea has decided to withdraw from the domestic market after failing to overcome the intensified management difficulties since last year. However, for Nissan and Nissan's premium brand Infiniti customers, services such as quality assurance and parts management will continue to be provided for the next eight years until 2028.

Nissan Korea announced on the 28th that it has decided to withdraw the Nissan and Infiniti brands from the Korean market by the end of December this year. Regarding this withdrawal decision, Nissan Korea explained, "As part of a global strategic business improvement plan, this is the final decision made by the headquarters to secure a sound profit structure and establish a sustainable business foundation in the global market in the mid to long term."

Nissan Korea stated, "Despite efforts to continue business in the Korean market, due to changes in the internal and external business environment, the situation in the domestic market has worsened, and the headquarters judged that it is difficult to establish a sustainable growth structure in the Korean market again," adding, "Sales will end by the end of December, but after-sales services such as vehicle quality assurance and parts management for existing Nissan and Infiniti customers will be continuously provided until 2028."

Nissan Korea has suffered severe sales slumps due to the impact of the Japanese boycott movement last year. Although withdrawal rumors have been raised mainly by foreign media, the company drew a line by stating in an official statement at the end of September, "We will continue our activities in the strategically important Korean market."

However, as the slump continued this year, it appears that the company ultimately chose to withdraw. From January to April this year, Nissan's sales volume in the domestic market was 813 units, a 41.3% decrease compared to the same period last year. During the same period, Infiniti also sold only 159 units, a nearly 80% drop compared to the previous year.

Finally, Nissan Korea said, "Since entering the domestic market in 2004, we have been able to grow in the Korean market thanks to the passionate and dedicated efforts of our employees and dealer partners, the interest and support of the media, and the love of our customers," adding, "We deeply regret to deliver this unfortunate news to our customers, dealers, employees, media, related organizations, and all stakeholders who have trusted and supported Nissan and Infiniti."