Soaring Luxury Imported Cars Over 100 Million Won... "Impact of Revenge Spending"

Accumulated Sales from January to July Up 74% Year-on-Year, German Brand Gains Maximum Benefit

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[Asia Economy Reporter Yu Je-hoon] The sales of high-priced imported cars exceeding 100 million KRW per unit are rapidly increasing. This trend is attributed to the growing demand for luxury and large vehicles, the prolonged COVID-19 pandemic, and the 'revenge consumption' mentality driven by eased monetary policies. Industry experts expect this trend to continue for the time being.

According to the Korea Imported Automobile Association on the 13th, the number of newly registered imported cars priced over 100 million KRW from the beginning of this year until last month reached 39,965 units, a 74% increase compared to the same period last year. This growth rate is about 4.6 times higher than the overall increase rate of imported cars (16.3%). The growth rate of high-priced imported cars is the highest in the past decade. In terms of registration numbers alone, it has already reached about 90% of last year's total new registrations.

The sales of 'ultra-high-priced' imported cars exceeding 400 million KRW are also rapidly increasing. According to a recent survey by the Korea Automobile Manufacturers Association, the cumulative number of newly registered ultra-high-priced cars in the first half of this year was 765 units, a 383% increase compared to the previous year.

The industry attributes the popularity of these high-priced imported cars to the COVID-19 pandemic. With leisure activities such as tourism, leisure, and social events being restricted due to COVID-19, the revenge consumption mentality has focused on cars, which stand out as 'personalized spaces.'

This phenomenon is also evident in the number of new registrations by purchaser type and age group. This year, the cumulative new registrations by purchaser type were 26,075 units for corporations and 13,890 units for individuals, with corporate purchases being about twice as high. However, in terms of growth rate, individuals (111%) outpaced corporations (60%). By age group (individual purchases), the growth rates were ▲20s 116% ▲30s 113% ▲40s 128% ▲50s 96% ▲60s 91% ▲70 and above 99%, showing higher growth rates among younger age groups with relatively higher social activity.

The biggest beneficiaries of this surge in high-priced imported car sales are German brands. Among imported cars priced over 100 million KRW, the five German brands (Mercedes-Benz, BMW, Audi, Porsche, Volkswagen) accounted for 93% of the market share.

Not only high-priced imported cars but also domestic premium brands are experiencing rapid growth. Hyundai Motor's luxury brand Genesis recorded cumulative sales of 84,660 units from January to July this year, a 41% increase compared to the previous year. This contrasts with Hyundai's overall domestic sales, which decreased by more than 3% due to the vehicle semiconductor supply shortage and other factors.

Professor Kim Pil-su of Daelim University's Department of Automotive Studies said, "In the domestic high-priced imported car market, there is a high demand for corporate purchases aimed at tax reductions and other benefits," adding, "Since last year, the revenge consumption mentality has strengthened due to the COVID-19 pandemic and low-interest-rate environment, leading to increased demand for luxury and large vehicles, which is also a significant factor."

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