[Click eStock] "Doich Motors, Imported New Car Sales Soar Due to COVID-19 Revenge Spending"

[Asia Economy Reporter Eunmo Koo] Since March, Deutsche Motors' new car sales have surged. Sales increased not only for models under promotion but also for non-discounted models, reflecting the impact of retaliatory consumption suppressed by the novel coronavirus disease (COVID-19).

Last month, the number of newly registered imported passenger cars in Korea reached 23,000 units, a 25.9% increase compared to the same period last year. Jaeyoon Kim, a researcher at KTB Investment & Securities, analyzed in a report on the 26th, "This increase in sales volume is understood to be influenced by retaliatory consumption due to COVID-19."

Although Deutsche Motors' new car sales performance was somewhat sluggish in the first quarter due to COVID-19, sales volume has increased significantly since March. BMW sales reached 1,108 units in March, up 69.2% year-on-year, and 1,138 units in April, up 60.7%. Notably, the overall increase in sales volume, not just for models under promotion, is encouraging.

The Ministry of Land, Infrastructure and Transport's decision on the recall of 240,000 BMW vehicles on the 22nd is also evaluated positively for Deutsche Motors' performance. Researcher Kim forecasted, "After-sales service (AS) revenue, which was sluggish due to COVID-19, is expected to quickly recover to normal levels as the recall proceeds."

This year's performance is estimated at KRW 1.36 trillion in sales, a 12.5% increase compared to the same period last year, and operating profit is estimated at KRW 54.6 billion, a 34.1% decrease. Researcher Kim explained, "The decrease in operating profit compared to the previous year is due to the completion of reflecting Auto World sales revenue," adding, "Excluding sales revenue, the increase in core business operating profit is expected to be around 36.6%."

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