[Asia Economy Reporter Suyeon Woo] As Nissan decided to withdraw from the Korean market and began a 'final clearance sale,' domestic sales in June this year increased by 190% compared to the previous year. This was due to the delivery of inventory that was sold out in just one day through aggressive discount policies over the past month.
According to the Korea Imported Automobile Association on the 4th, Nissan Korea's domestic sales in June this year were 824 units, a 190% increase compared to the previous year. This is the highest monthly sales figure in 8 years and 7 months since November 2011 (866 units). Until the first half of this year, before the boycott of Japanese products began, Nissan had been selling around 300 units per month.
The sharp rise in Nissan Korea's sales in June this year was thanks to aggressive discount policies introduced ahead of its withdrawal from Korea. Nissan's mid-size sedan Altima was discounted by 10 million to 13.5 million KRW depending on the trim, and the Maxima was discounted by 14.5 million KRW, resulting in all inventory being sold out within a day of the promotion.
In particular, 666 units of the new Altima 2.5 were sold. The 6th generation new Altima, launched in the domestic market in mid-July last year, was an unfortunate model that was directly hit by the boycott of Japanese products, which intensified from July. At that time, Nissan Korea proceeded with the launch schedule without changes but canceled media events and test drive events considering the relations between the two countries.
After the boycott, Nissan Korea's monthly sales hardly recovered. Early this year, sales fell below 100 units per month, continuing the slump. On top of that, the outbreak of COVID-19 further worsened the headquarters' profitability.
Eventually, Nissan's global restructuring announced by the Japanese headquarters began by cutting unprofitable businesses. On the 28th, Makoto Uchida, Nissan's president, held a press conference and officially announced the withdrawal from the Korean market, stating, "We will implement a selection and concentration strategy for overseas markets."
At the same time, Nissan Korea announced that it would continue after-sales (A/S) services such as quality assurance and parts management until 2028. The condition of offering A/S services guaranteed for the next eight years at prices more than 30% cheaper than the list price was enough to stimulate domestic consumers.
An industry insider said, "As the boycott of Japanese products has cooled down, aggressive promotions have been launched, and the domestic situation of Japanese car brands is gradually improving," adding, "While sales are difficult in other overseas markets due to COVID-19, the domestic imported car market is still booming."
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