Imported Car Sales Plummet Amid Semiconductor Shortage... Fierce Competition in the 10,000-Unit Club

On the 25th, participants are touring the BMW exhibition hall at the press day of the country's largest automobile exhibition, the '2021 Seoul Mobility Show,' held at KINTEX in Goyang-si, Gyeonggi-do. / Goyang - Photo by Kim Hyunmin kimhyun81@

On the 25th, participants are watching Audi's announcement of five new car models at the press day of the largest domestic auto show, the '2021 Seoul Mobility Show,' held at KINTEX in Goyang, Gyeonggi Province. / Goyang = Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Ki-min Lee] Amid the impact of the vehicle semiconductor supply shortage, imported car sales have been declining in the second half of this year, intensifying competition among companies to join the 10,000-unit club.

According to the Korea Imported Car Dealers Association (KAIDA) on the 5th, imported car sales increased from 22,321 units in January to 26,191 units in June, but sales began to decline from July, recording 18,764 units in October and 18,810 units in November.

This is a decrease of about 5,500 to 7,400 units compared to 24,257 units in October and 27,436 units in November last year. Typically, sales increase at the end of the year due to promotions by various companies, but this year, sales have been disrupted due to the semiconductor supply shortage.

As imported car sales decline, the industry is paying close attention to which brands can enter the 10,000-unit club. As of last November, six imported car companies surpassed 10,000 units in sales: Mercedes-Benz, BMW, Audi, Volvo, Volkswagen, and Mini.

Mercedes-Benz and BMW, ranked first and second in domestic imported car sales, recorded cumulative sales of 69,400 and 61,436 units respectively from January to November this year, showing increases of 3.1% and 16.7% compared to the same period last year. Following them were Audi with 21,242 units, Volvo with 13,653 units, Volkswagen with 13,444 units, and Mini with 10,413 units sold.

Jeep, which sold 7,794 units cumulatively from January to November last year, sold 9,350 units this year and is on the verge of entering the 10,000-unit club. Jeep attracted customers by actively launching new models this year, including the urban compact sport utility vehicle (SUV) All-New Compass, the first electrified model Wrangler 4Xe, and last month, the large SUV All-New Grand Cherokee L. Having sold 650 units last month, if sales continue at the same level this month, Jeep is expected to achieve the 10,000-unit club.

Lexus, which was hit by the boycott of Japanese brands, is also a candidate likely to enter the 10,000-unit club for the first time in two years. Lexus, which sold more than 10,000 units annually from 2016 to 2019, sold 8,994 units this year, supported by sales of its representative mid-size hybrid electric vehicle (HEV) ES300h, which sold 6,114 units from January to November. Notably, the new model ES300h, released last September, sold 698 units and was selected as the best-selling car this month. However, since Lexus sold 951 units in November last year but only 866 units this November due to semiconductor issues, it is still too early to be confident.

On the other hand, Chevrolet, which entered the 10,000-unit club with cumulative sales of 11,416 units from January to November last year, sold only 8,553 units up to November this year due to semiconductor shortages and sluggish sales. Especially, last month's sales were only 431 units, less than half of the 1,067 units sold in the same period last year, making it unlikely to enter the 10,000-unit club.

Furthermore, Porsche, which was expected to enter the 10,000-unit club for the first time this year, is facing difficulties. Porsche sold 7,211 units in the first to third quarters of this year, a 14% increase from the same period last year, leading to expectations of surpassing 10,000 units. However, due to semiconductor supply issues from the fourth quarter, Porsche sold only 956 units in October and November combined, bringing the cumulative sales from January to November to 8,167 units.