Is a Light Green License Plate on a 300 Million Won Bentley Embarrassing?…Corporate Car Registrations Plummet by 78%

The Share of Imported Cars Registered by Corporations Falls Below 30% for the First Time
Bentley Sales Drop 77.4%... Impact on High-End Imported Cars

Since the introduction of the corporate-exclusive 'light green license plate,' the number of imported corporate car registrations has been on the decline.

On the morning of January 8, an employee is organizing green license plates for high-value corporate vehicles at the Suwon Urban Corporation License Plate Production Office in Gwonseon-gu, Suwon-si, Gyeonggi-do.
[Image source=Yonhap News]

On the 15th, the Korea Automobile Importers & Distributors Association (KAIDA) reported that last month, the number of imported corporate car registrations priced over 80 million KRW was 3,868 units. This represents a decrease of 1,768 units (31.4%) compared to 5,636 units during the same period last year. In February as well, 3,551 units were recorded, down 1,242 units (25.9%) from 4,793 units in the same month last year. The mandatory attachment of light green license plates to corporate passenger cars with an acquisition price of 80 million KRW or more, implemented since January this year, is interpreted as the cause of the decline in registration numbers. This means that people who previously purchased high-priced imported cars as corporate vehicles to take advantage of tax benefits are reducing their purchases due to resistance to the light green license plates.

With the decrease in registrations of high-priced corporate cars due to the introduction of the light green license plates, the proportion of corporate cars in imported car sales has also sharply declined. Last month, while the number of newly registered imported passenger cars increased by 6.0% to 25,263 units compared to 23,840 units in the same month last year, the proportion of corporate car registrations was recorded at 28.4% (7,179 units). Last month was the first time the corporate car registration proportion fell below 30%. The corporate car proportion last year was 39.7%.

Sales of luxury car brands priced over 80 million KRW are also sharply declining. Last year, the corporate car proportions by high-end brands were 87.3% for Rolls-Royce, 76.0% for Bentley, and 61.1% for Porsche. In the first quarter of this year, Bentley registrations decreased by 77.4% to 38 units compared to the same period last year. Rolls-Royce (35 units) and Porsche (2,286 units) also dropped by 35.2% and 22.9%, respectively. As the light green license plates significantly impact high-priced imported car sales, so-called 'tricky corporate cars' that falsely lower acquisition prices to report are also emerging, indicating the need for thorough crackdowns by relevant authorities.