Following the information that home gross sales by South Korea’s 5 fundamental automakers mixed elevated by simply over 25% to 138,530 models in September 2020, a GlobalData analyst informed just-auto that the Korean auto business is firmly in restoration – helped by a tax break that’s boosting the Korean market.
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, notes that South Korea’s prime 5 automakers – Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co. – offered a cumulative of 678,549 models in September, up from 655,968 models in September 2019.
“The growing home and abroad gross sales marks the restoration of Korean auto business from the long-prevailing COVID-19 dent,” he says.
“The brand new car gross sales recovered on the again of robust home demand in addition to enhancing abroad demand. Home gross sales witnessed a strong progress of 25% to 138,530 models over 110,654 models a yr in the past, which was primarily pushed by the rising want for private mobility amid COVID-19, elevated traction in the direction of EVs and excessive quantity gross sales of fashions resembling Tesla Mannequin 3 and Hyundai Kona EV, aggressive promotion and launch of latest fashions by OEMs.
“Most significantly, the 30% decline in consumption tax, which is prolonged until finish of this yr, can also be boosting gross sales.”
Car exports additionally noticed a primary year-on-year improve since March 2020 with demand from abroad markets together with US, Europe and CIS international locations up after sharp declines in earlier months. “There have been elevated shipments of South Korean SUVs and eco-friendly autos,” says Agwan.
Agwan additionally forecasts robust gross sales forward. “With the Korean automakers set to launch new autos and aggressive promotion marketing campaign within the subsequent few months, the This fall 2020 home gross sales in South Korea could witness vital improve and counterbalance the hunch created by the COVID-19,” he maintains. “For example, Hyundai has introduced launch of its new Tucson SUV and G70 sedan, SsangYong has plans to launch Tivoli Air SUV and Renault Samsung is all set with its Zoe all-electric. Tax relation of cars and availability of incentives on EV will stay main driving forces.”
See additionally: South Korean gross sales leap 25% in September