Market Share Jumps 4 Times to 6.6%
Thanks to Improved Product Appeal and Maintained Price Competitiveness
German Brand Share Declines
In the domestic imported car market, which has been dominated by high-end German brands, non-German brands are making significant advances. The Swedish brand Volvo, for instance, has ranked fourth in imported car sales for three consecutive months since April this year, forming a new top three structure among premium brands.
The market share of German brands in the domestic imported car market has consistently exceeded half for years. According to statistics from the Korea Imported Automobile Association, the market share of German brands was 69.4% ten years ago in 2014. In 2022 and last year, it surpassed 70%. This year, it has slightly decreased to 59.8%.
The gap left by the decline of German brands has been filled by Volvo. Its market share was about 1.5% in 2014, but this year it has increased more than fourfold to 6.6% (based on the first half of the year). The market share of American brands also rose from 7.4% to 18.5%.
Volvo has maintained a steady monthly sales volume of around 1,200 units this year, forming a premium brand top three structure alongside BMW and Mercedes-Benz. The company explained that the ability to compete with high-end brands was due to enhancing product quality while maintaining price competitiveness.
Targeting the Korean market, Volvo equipped all models with the familiar T-map infotainment system for most consumers, while applying advanced safety features and highly preferred convenience options across all models. The T-map infotainment service integrates T-map, the AI platform NUGU, and the music platform FLO, based on Google's Android Automotive OS.
Users can control navigation, climate settings, information search, music playback, and phone calls through voice recognition. To encourage the use of these services without burden, buyers receive a five-year digital service package subscription upon purchasing a vehicle. Over-the-air (OTA) updates are also provided free of charge for 15 years, allowing users to enjoy the latest features over time.
Post-sale service has also been emphasized. The company invested an additional 100 billion KRW last year and this year to expand the domestic service network and train personnel. Purchased vehicles come with a free warranty of five years or 100,000 km, and plug-in hybrid or electric vehicles’ high-voltage batteries are covered by an eight-year or 160,000 km free warranty.
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