'Corona Safe Zone' June Imported Car Sales Grow 41%... 6 Consecutive Months of Increase

[Asia Economy Reporter Suyeon Woo] Last month, the domestic imported car market recorded growth of over 40% compared to the previous year, continuing its upward trend for six consecutive months. While the global automobile market shrank due to the novel coronavirus infection (COVID-19), the domestic imported car market has avoided the shock of COVID-19 and confirmed steady demand.

According to the Korea Imported Automobile Dealers Association (KAIDA) on the 3rd, sales in the domestic imported car market in June reached 27,350 units, a 41.1% increase compared to the same month last year. Mercedes-Benz maintained its position as the top imported car brand with 7,672 units sold, up 15.7% year-on-year, followed by BMW with 4,069 units and Audi with 3,401 units, with the market share of the three German brands (55.3%) exceeding half of the total market. The best-selling car was Audi's new sedan A6 40 TDI, which overtook Mercedes-Benz's long-time throne holder, the E 300 4MATIC.

Audi A6 40 TDI

By country, German cars accounted for 17,390 units, representing 63.6% of the total, with European brands' market share reaching 76%. Japanese cars, which had a market share exceeding 20% until June last year, shrank to a 10% share with 2,735 units sold in June this year. While major Japanese car sales such as Toyota (-22%) and Honda (-83%) declined, Nissan, which is preparing to withdraw from the Korean market, saw its June sales increase by 190% to 824 units due to aggressive discount policies.

Since the beginning of this year, monthly sales of imported cars in Korea have continued to increase for six consecutive months. Even based on the first half of the year, the imported car market has recorded growth, showing no impact from COVID-19. Imported car sales in the first half of this year reached 128,236 units, a 17.3% increase.

In brand rankings, Mercedes-Benz maintained first place with 36,368 units, while BMW and Audi, ranked second and third respectively, showed remarkable progress. BMW sold 25,430 units in the first half of this year, a 41.5% increase compared to the previous year, and Audi, which had almost no sales due to certification issues until last year, surpassed 10,000 units in the first half of this year alone.

Brands competing for third and fourth place such as Volkswagen (7,405 units), Volvo (6,524 units), and Chevrolet (7,380 units) each recorded sales exceeding 5,000 units in the first half, closely approaching the annual target of 10,000 units this year. The best-selling car in the first half was Mercedes-Benz's E 300 4MATIC, with 5,517 units sold.

By fuel type, sales of diesel and gasoline cars increased with the rise in German car sales, but hybrid car sales declined due to the poor performance of Japanese brands. Diesel cars sold 37,257 units in the first half, up 13% year-on-year; gasoline cars sold 74,717 units, up 26%; but hybrid cars decreased by 11% to 14,660 units. Electric vehicles surged 133% compared to last year but accounted for only about 1% of the total market, having little impact.