Sales Down 13.4% Last Year Due to Cheongna Fire
Sales Recovering Centered on High-Performance Models
"Next Year Will See the Most Diverse Lineup in History"
"The Cheongna fire was an extremely tragic incident. Since that day, we have continued to focus on how we can achieve the highest levels of quality, safety, and testing. The fact that there is no compromise when it comes to quality or safety is part of the Mercedes-Benz brand's DNA, which has continued for 140 years."
Matthias Becht Mercedes-Benz Korea CEO is speaking at the 'Dream Ride' press conference held in Jeju on the 23rd. Mercedes-Benz
The electric vehicle fire that occurred in the underground parking lot of an apartment in Cheongna, Incheon in August last year happened just 11 months after Matthias Becht took office as CEO of Mercedes-Benz Korea. Although he was only in his first year as CEO, he personally met with affected residents at the scene and appeared at a National Assembly audit, actively working to resolve the situation.
At the 'Dream Ride' event held in Jeju on the 23rd, CEO Becht emphasized, "It is important not only to launch attractive cars, but also to present vehicles that meet the highest standards in terms of quality and safety, and we are working hard to prepare for this."
Due in part to the impact of the Cheongna fire, Mercedes-Benz Korea's sales last year reached only 66,400 units, a 13.4% decrease compared to the previous year's 76,697 units. In 2022, the company surpassed annual sales of 80,000 units (80,976 units) for the first time, but sales have declined for two consecutive years.
However, this year, sales have been recovering rapidly. From January to May, cumulative sales reached 26,538 units, a 13.6% increase compared to the same period last year (23,350 units). High-performance vehicles have been at the center of this growth. The SL roadster (a lightweight convertible) saw sales surge by 112% year-on-year, while the CLE, a compact convertible, grew by 98%. The G-Class, for which customers must wait two to three years after ordering, saw sales increase by 123%. Sales in the high-performance AMG lineup also rose by 68%.
Matthias Becht Mercedes-Benz Korea CEO is speaking at the 'Dream Ride' press conference held in Jeju on the 23rd. Mercedes-Benz
CEO Becht said, "We are loved by customers in all luxury business segments in the Korean market," but added, "In the case of AMG, many people seem to like it because, as a sports car, it is sporty but also suitable for everyday use."
Mercedes-Benz Korea plans to regain its pride by launching the top luxury brand Maybach's SL roadster in the second half of this year, followed by a large-scale new model launch next year. He explained, "Next year, we plan to launch the most diverse lineup in the brand's history," and added, "We are particularly confident in the electric vehicle segment, as we will introduce many electric models."
Models scheduled for release next year are expected to include the all-new Mercedes-Benz CLA, which made its world premiere in March, as well as various vehicles such as midsize electric cars, hypercars based on the AMG electric architecture, and plug-in hybrid models.
In addition, Mercedes-Benz Korea will begin operating an online direct sales system starting next year. Currently, after Mercedes-Benz Korea imports the vehicles, dealers such as Han Sung Motor and HS Hyosung are responsible for sales and after-sales service. There are concerns that conflicts may arise with dealers once online sales begin.
CEO Becht stated, "Even if we change the sales system, it does not mean that dealers will no longer be necessary, and sales staff will continue to be present," and added, "There will be no change in the fact that dealers are the first point of contact with customers and in our commitment to providing the highest level of service to customers." He emphasized that discussions with dealers would continue.
The company will also increase the number of service centers responsible for customer service. As of May, Mercedes-Benz Korea operates 63 showrooms and 73 service centers. He said, "This year, we opened large service centers in Bangbae, Seoul and in Daegu, and recently expanded the service center in Osong," adding, "By the end of the year, we plan to add 100 more work bays (maintenance workstations) compared to last year."
CEO Becht said, "We are not simply desperate to increase sales in the Korean market; what matters is how we respond to customer needs," and expressed confidence, "I expect that we will continue to grow in the Korean market."
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