Online Sales Soar... Auto Industry Embraces Untact Trends

[Asia Economy Reporter Kiho Sung] Since the outbreak of the novel coronavirus infection (COVID-19), the 'contactless (untact) channel' has been gaining attention in the automobile sales market.

According to Renault Samsung Motors on the 15th, the number of online subscriptions for the compact sport utility vehicle (SUV) XM3 reached about 2,000 units by April. This accounts for 16.8% of the total sales of 11,914 units. In particular, the online sales ratio surged to 24% in February, when the COVID-19 situation was severe in Korea.

A Renault Samsung official explained, "We expected online demand to temporarily increase during the February pre-order period, but the trend has continued steadily even after the main sales started in March." Renault Samsung Motors introduced the online subscription system for the first time in the domestic industry when it launched the QM6 in September 2016. However, before COVID-19, online subscriptions accounted for only about 1% of total sales, showing sluggish performance.

SSangYong Motor is also experiencing an increase in untact sales through TV home shopping. On the 3rd, the 'Respect Korando and Tivoli' models sold through CJ O Shopping, a TV home shopping channel, received 2,576 consultation reservations during the broadcast. This is a significant increase compared to the 1,813 consultation reservations received during the Korando sales broadcast in December last year, before COVID-19.

A CJ O Shopping official said, "The vehicles introduced this time have improved marketability due to the launch of the Respect models, resulting in higher-than-expected customer inquiries," adding, "We also believe this is influenced by the spread of 'untact purchasing' throughout society due to COVID-19."

A SsangYong Motor official stated, "Sales processes are currently underway centered on consultation customers," and added, "Looking at last year's cases, many consultations led to actual purchases, so we are hopeful this time as well."

In the imported car industry, Audi Korea officially launched a 'contactless video consultation service' from this day, allowing customers to purchase and consult on vehicles without visiting showrooms. Consumers can apply through the Audi Korea website, after which a sales advisor contacts them to discuss detailed schedules for the video consultation. The video consultation is conducted via Kakao FaceTalk at the agreed time. Additionally, key notifications such as reservation confirmation, one day before, and consultation completion are provided at each stage of the video consultation reservation.

However, there are still many hurdles to overcome before full-fledged online car sales can be realized. This is because the automobile sales labor union strongly opposes it. The sales union is concerned that if vehicle sales through TV home shopping or online channels become active, job losses will occur. In the case of Hyundai Motor Company, online sales are currently conducted only in overseas markets such as the United States and India.

This content was produced with the assistance of AI translation services.