Corporate purchases over 100 million KRW account for 46.7% of all imported cars
Next year's implementation of 'light green license plates' seems to cause avoidance phenomenon
Ahead of the implementation of the 'light green license plate' for corporate vehicles priced over 80 million KRW in 2024, sales of high-end corporate imported cars priced over 100 million KRW have increased.
One in Two Corporate Cars Purchased This Year Costs Over 100 Million KRW... Lamborghini Sales Are 90% Corporate Vehicles
According to the Korea Automobile Importers & Distributors Association (KAIDA) on the 23rd, despite a decline in overall imported car sales from January to October this year, sales of high-end corporate imported cars priced over 100 million KRW are expected to increase.
Imported cars sold to corporations this year totaled 84,918 units, accounting for 38.8% of total imported car sales. The volume of imported cars purchased by corporations priced over 100 million KRW also increased by 2.3% (898 units) compared to 38,836 units during the same period last year.
In particular, imported cars priced over 100 million KRW purchased by corporations amounted to 39,734 units, accounting for nearly half (46.7%) of all corporate imported car purchases. This means that one in two imported cars purchased by corporations is a high-priced vehicle costing over 100 million KRW.
Annual sales of high-end corporate imported cars surged by 124.3% in three years, from 21,130 units in 2019 to 47,399 units last year. This year, sales are expected to be around 50,000 units.
The brand that sold the most imported cars priced over 100 million KRW to corporations is Mercedes-Benz (18,068 units). It was followed by BMW (9,833 units), Porsche (5,754 units), Land Rover (2,385 units), and Audi (1,501 units).
The brand with the highest corporate sales ratio among high-end imported cars is Lamborghini. Priced over 300 million KRW per unit, Lamborghini sold 351 units domestically this year. Of these, 318 were corporate vehicles, accounting for 90.6% of total sales.
Next were Rolls-Royce (86.9%) and Maserati (75.5%). The imported car with the lowest corporate sales ratio among vehicles priced over 100 million KRW was Volvo, recording 42.3%. Additionally, Ford was also below 50% at 44.4%.
Due to Avoidance of 'Light Green License Plates,' High-End Corporate Car Sales Likely to Increase Until Year-End... Overall Imported Car Sales Slightly Decline
The Ministry of Land, Infrastructure and Transport announced on the 2nd that it has administratively notified the amendment to the "Standards for Vehicle Registration Plates, etc." for the introduction of exclusive license plates for corporate passenger cars until today, and plans to implement it from January 1 next year. [Image source=Yonhap News]
The imported car industry expects sales of high-end corporate cars to increase further until the end of the year. This is because the government will enforce the application of corporate car license plates, known as 'light green license plates,' starting next year.
The Ministry of Land, Infrastructure and Transport announced an administrative notice from the 2nd until today regarding the revision of the "Standards for Vehicle Registration Plates," which includes the attachment of light green license plates to corporate vehicles priced over 80 million KRW. The enforcement date is January 1. The revision applies to newly registered or changed corporate vehicles from January next year onward. This includes both imported and domestic cars.
Meanwhile, imported passenger car sales from January to October this year totaled 218,071 units. Compared to the same period last year (225,573 units), this is a 2.9% decrease. Considering the monthly average sales of about 21,800 units this year, total imported car sales are expected to slightly exceed 250,000 units by December.
Imported car sales showed an increasing trend for three consecutive years from 2019 to 2022. Last year, sales reached a record high of 290,034 units, and the share of imported cars in total passenger car sales exceeded 20% for the first time at 20.1%. However, this year, due to high interest rates and economic slowdown, sales have decreased for the first time in four years.
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