'No Big Discounts This Peak Season'... Auto Industry Changes Discount Policies Amid 'Semiconductor and Material Supply Shortages'

Up to 20% Discount During Last Year's Korea Sale Festa
This Year, Similar or Lower Levels Compared to Last Month's Promotion
Semiconductor Supply Shortage Causes Shipping Delays, Aluminum and Magnesium Material Prices Soar

[Asia Economy Reporter Ki-min Lee] Completed car manufacturers experiencing disruptions in vehicle production due to the automotive semiconductor supply shortage are revising their promotion strategies. Although the Korea Sale Festa, known as the Korean version of Black Friday, is taking place this month, unlike previous years, it is quietly passing without so-called 'big discounts.'

According to the industry on the 6th, five domestic completed car manufacturers are selling vehicles under conditions similar to last month during this month's Korea Sale Festa.

Hyundai Motor applies low-interest installment plans of 2.5~3.3% for some models at levels similar to last month. In addition, it is holding an event offering partial discounts on vehicle prices for vehicles produced before September. Kia, instead of vehicle discounts held last year, is conducting the 'Kia Thank You Festa,' where customers who purchase Kia vehicles or visit showrooms are entered into a draw to win national tourism gift certificates, camping table and chair sets for two, premium Korean beef barbecue sets, and more.

In the case of SsangYong Motor and Chevrolet, although it is the Korea Sale Festa period, promotions and benefits are similar to last month. SsangYong Motor offers a discount of 800,000 KRW when purchasing Korando, Tivoli, and Tivoli Air on installment plans this month, and 500,000 KRW for Rexton and Rexton Sports.

Chevrolet has extended the autumn promotion conducted last month through this month. When using combo installment plans combining installment and cash support, Chevrolet Traverse receives a 2.5 million KRW discount, and Malibu receives a 1.8 million KRW discount.

Renault Samsung Motors, which uses the Korea Sale Festa name, offers a 2 million KRW discount on cash purchases of the SM6 and an additional 1 million KRW support for stock produced last year. The QM6 also provides support benefits of 1.5 million KRW for the GDe model and 500,000 KRW for the LPe model for convenience features, accessories, and warranty extension purchase support. The XM3, which is popular in Europe and drives Renault Samsung Motors' sales, is excluded from benefits.

The discount policies of completed car manufacturers this month are very passive promotions compared to the 'peak' situations in previous years. Previously, completed car manufacturers offered discounts ranging from a minimum of 3% to a maximum of 20% by model during the Korea Sale Festa period.

In Hyundai Motor's case, during last year's Korea Sale Festa period, discounts were applied not only to sedans and sport utility vehicles but also to commercial vehicles. Kia also provided support of up to 2.3 million KRW when purchasing vehicles with 36-month interest-free installments, in addition to model-specific discounts.

SsangYong Motor supported 10% discounts and 60-month interest-free installments for Tivoli and Korando, and Chevrolet applied discount rates of 10~13% by model. Renault Samsung Motors also provided a maximum purchase cost support of 2.5 million KRW and a maximum discount amount of 4.4 million KRW.

An industry official said, "Due to the semiconductor supply shortage causing production disruptions, as well as recent soaring prices of magnesium used in vehicle body aluminum and aluminum alloys, which are factors increasing automobile production costs, it seems they decided not to recklessly hold events that increase discount rates."

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