'Volkswagen Jetta' in the 20 Million KRW Range Leads Imported Car Sales Boom

[Asia Economy Reporter Suyeon Woo] Volkswagen's compact sedan Jetta is gaining popularity in the domestic market with its competitive price in the 20 million KRW range. Volkswagen's strategy is to lead the popularization of imported cars once again by applying not only a bold pricing policy but also a 5-year/150,000 km maintenance service warranty period.

According to the automotive industry on the 24th, since the pre-orders for the new 7th generation Jetta began on the 15th, contracts have exceeded the initial supply volume (2,650 units). As the initial supply was almost sold out, Volkswagen is reportedly temporarily suspending contract acceptance.

They succeeded in attracting consumer interest with the price competitiveness of being able to buy a German imported car in the 20 million KRW range. Recently, Volkswagen has continued aggressive marketing with bold promotions, such as offering up to a 20 million KRW discount on the large sport utility vehicle (SUV) Touareg in August.

The price of the new 7th generation Jetta, reflecting the reduction in individual consumption tax, is 27,149,000 KRW for the Premium model and 29,516,000 KRW for the Prestige model. For the Premium model, using the financial installment program allows an additional discount of up to 14%, making it possible to purchase at 23,299,000 KRW. This is a competitively priced level comparable to the domestic sedan Avante, which ranges from 15,700,000 to 25,260,000 KRW.

Additionally, a warranty extension period of 5 years or 150,000 km is provided, along with a 'Service Plus Coupon' that supports consumable replacement for up to 3 years. The strategy is to reduce the total ownership cost by considering not only the selling price but also maintenance costs.

The 7th generation new Jetta is the first Jetta model designed based on the MQB (Modular Transverse Matrix) platform for transverse engine layout. It is equipped with a 1.4-liter gasoline turbo engine delivering a maximum output of 150 horsepower and a maximum torque of 25.5 kg·m. Convenience features such as a panoramic sunroof, ambient lighting, ventilated front seats, and heated front and rear seats are applied, and the adaptive cruise control, a safety driving system, is also installed.

First launched in 1979, the Jetta has sold over 17.5 million units worldwide over more than 40 years, and in Korea, more than 17,000 units have been sold since its launch in 2005. In particular, the previous 6th generation Jetta led domestic market sales with over 15,000 units sold.

Stefan Krap, President of Volkswagen Korea, said, "We will lead the popularization of the imported sedan market by offering the launch edition of the new Jetta at a reasonable price so that Korean customers can choose an imported sedan as their 'first car.'"

Volkswagen Korea plans to introduce seven core models to the domestic market by next year following the launch of this Jetta. Starting with the Jetta launch in November, a facelifted mid-size sedan Passat GT will be introduced by the end of the year. Early next year, the compact SUV T-Roc will be launched, followed by the new Golf in the second half of the year. Volkswagen's first pure electric SUV, the ID.4, is scheduled to be released in the domestic market in 2022.