Attorney Jeong Junho Proposes Sales Strategy for 'Casper' with Substantial Price Reduction Method

"Active Consideration Needed for Acquisition Tax and Automobile Tax Support"

[Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Attorney Jeong Junho proposed on the 12th, regarding the price controversy that erupted immediately after the launch of 'Casper,' the first product of the Gwangju-type job model, that "Gwangju City and Hyundai Motor Company should actively consider 'support for acquisition tax and automobile tax' based on mutual growth."

He argued that a 'two-birds-with-one-stone' strategy should be implemented to ease the consumer burden through acquisition and automobile tax support while simultaneously enhancing price competitiveness to increase vehicle sales.

The SUV light car 'Casper' is a valuable achievement realized just over two years after the establishment of the joint venture between Gwangju City and Hyundai Motor Company, Gwangju Global Motors (GGM), based on the value of labor-management coexistence.

Starting production of the first vehicle on the 15th of last month and entering mass production, Casper had a successful debut, exceeding the annual production target (12,000 units) with reservation numbers alone.

However, Attorney Jeong analyzed that it is uncertain whether Casper's actual sales after next year will reach GGM's target of 70,000 units (break-even point). The unstable position of Casper in the automobile market is the reason.

In terms of price, Casper is much more expensive than existing light cars (Morning, Ray) but forms a price range similar to or slightly lower than compact SUVs or sedans, which are one class higher.

To use popular features among young people recently, such as car camping functions (full folding seats) and safety features, one must purchase the full option priced around 20 million won.

Therefore, Attorney Jeong predicted that if the freshness of Casper's image declines, the price aspect will be highlighted, likely leading to a decrease in sales.

In fact, the Morning released its third-generation model in 2017, and the Ray model from 2011 has been maintained without significant changes.

Considering these points, Casper's popularity partly benefited from the timing advantage of its launch.

If other new cars are released and the price difference with compact cars is not significant, consumers are likely to be drawn to compact cars or new cars.

However, since Casper is sold online without separate sales commissions and is produced by workers earning around 30 million won annually, the vehicle price appears to be high due to underestimation of production volume and fixed costs such as new development expenses being reflected in the cost.

Attorney Jeong stated, "If Casper's sales outlook remains as it is and price competitiveness is secured, there is sufficient room to lower the vehicle price further," adding, "If necessary, Hyundai Motor Company could create a fund with Gwangju City on a 50-50 matching basis as a gesture of mutual growth to support the portion corresponding to acquisition and automobile taxes, which would significantly boost sales promotion and marketing effects."

Additionally, assuming 20,000 Casper units are sold in Gwangju, acquisition tax plus automobile tax is expected to amount to about 7 billion won annually.

Meanwhile, Attorney Jeong Junho graduated from elementary, middle, and high schools in Gwangju and entered Seoul National University Law School in 2001 with a perfect score on the college entrance exam. After graduation, he passed the bar exam and has been working as a lawyer. He has served as a village lawyer in places like Malbau Market and helps citizens and socially vulnerable groups who have difficulty with legal responses.

In the recent Democratic Party presidential primary, he served as the co-chairman of the Hope 22 Forum, an external support organization for candidate Lee Jae-myung, the head of the Gwangju branch of the nationwide support organization Gongmyeong Forum, and the head of the Gwangju branch of the Organization 2 Headquarters of the primary election countermeasures committee, assisting candidate Lee Jae-myung's primary victory. Ahead of next year's local elections, he is actively pursuing a political career, being considered a potential candidate for mayor of Gwangju.

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