"No COVID-19 Shock"... Imported Car Sales Surpass 20,000 Units for Three Consecutive Months

23,272 Imported Cars Sold in May... 19.1% Increase Compared to Previous Year

Mercedes-Benz E300 (Photo by Mercedes-Benz Korea)

[Asia Economy Reporter Kim Ji-hee] Last month, domestic imported car sales surpassed 20,000 units, marking an increase of nearly 20% compared to the same period last year. Despite concerns that sales would decline due to the impact of the novel coronavirus (COVID-19), the effect of new car models and reductions in individual consumption tax have helped sustain a three-month consecutive increase in sales since March.

According to the Korea Automobile Importers & Distributors Association (KAIDA) on the 3rd, the number of newly registered imported passenger cars in May was 23,272 units, up 19.1% from the same period last year. After hitting a low point of 16,725 units in February, when the spread of COVID-19 intensified domestically, sales have exceeded 20,000 units for three consecutive months. Imported car brands surpassed 23,000 units in domestic sales only twice last year, in November and December. Accordingly, cumulative sales through May this year reached 100,886 units, a 12.2% increase from last year.

Audi and Volkswagen, which were hampered by certification issues last year, significantly increased sales by introducing new models. Audi, which did not sell a single unit in May last year, sold 2,178 units last month, and Volkswagen’s sales nearly doubled from 673 to 1,217 units. These two brands ranked third and fourth in imported car sales, following the 'traditional leaders' Mercedes-Benz (6,551 units) and BMW (4,907 units).

The effect of Chevrolet joining the imported car market also played a role. Chevrolet recorded 1,145 units sold domestically last month, capturing nearly 5% market share and ranking fifth in the overall imported car market. The pickup truck 'Colorado' led the brand’s overall performance with 470 units sold.

The growth of supercar brands is also notable. Porsche, which sold only 210 units in May last year, has been thriving with monthly sales exceeding 1,000 units in both April and May this year. Cumulative sales through May this year have comfortably surpassed 3,000 units. Lamborghini also recorded 31 units last month, achieving cumulative sales of 115 units this year.

Im Han-gyu, Vice Chairman of KAIDA, explained, "New registrations of imported passenger cars in May showed mixed increases and decreases by brand, but some brands saw slight increases compared to the previous month due to new car effects and promotions."

By country, European brands continued to perform well while Japanese brands lagged. Last month, European brands sold 18,753 units domestically, accounting for 80.6% market share. Japanese brand sales plummeted 62.1% year-on-year to 1,672 units. Honda (-86%), Toyota (-61.8%), and Lexus (-49.2%) all saw sales drop by more than half, and Nissan, which recently officially announced its withdrawal from the Korean market, also recorded a 23.7% decrease.

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