Diesel Cars Decline... Hybrid Vehicles Expected to Surpass for the First Time in Imported Car Market

Strengthening Environmental Regulations and the Complex Trend of Eco-Friendly Vehicles

[Asia Economy Reporter Yu Je-hoon] This year, in the domestic imported car market, diesel vehicles are expected to be overtaken by hybrid vehicles for the first time. The global trend toward eco-friendly cars is accelerating the decline of diesel vehicles.

According to statistics from the Korea Automobile Importers & Distributors Association (KAIDA) on the 16th, the cumulative number of newly registered hybrid vehicles from January to November this year was 66,150, significantly surpassing the number of newly registered diesel vehicles (34,886). Although sales results for this month are still pending, considering the current trend, this year is expected to be the first year in which hybrid vehicles outsell diesel vehicles in the imported car market.

In the late 2000s, the "clean diesel" craze, centered on European brands, led imported diesel vehicles to peak with sales of about 160,000 units in 2015, but have since been on the decline. In 2018, diesel vehicles lost the lead to gasoline vehicles, and this year, they have been overtaken by hybrid vehicles.

The decline of diesel vehicles in the imported car market is interpreted as a result of brands restructuring their lineups around eco-friendly vehicles. Mild Hybrid Electric Vehicles (MHEV) and others are rapidly replacing diesel vehicles. A KAIDA official stated, "Recently, German brands, which had been strong in the diesel segment, have been intensively launching MHEV models and reorganizing their overall lineups accordingly."

The sluggishness of diesel vehicles is not limited to imported cars. According to the Kaizyu Data Research Institute, the cumulative number of diesel vehicle registrations from January to November was 397,916, which is not significantly different from the combined sales of eco-friendly vehicles such as hybrid, electric, and liquefied petroleum gas (LPG) vehicles, totaling 357,406 units. Although there is still a sales gap of about 40,000 units, depending on this month's results, it is possible that eco-friendly vehicles will surpass diesel vehicles.

The decline of diesel vehicles is linked to the global trend of strengthening environmental regulations. Professor Lee Ho-geun of Daeduk University said, "Even individual consumers inevitably have to deeply consider the future residual value of diesel vehicles amid tightening environmental regulations," adding, "In fact, Korea has been a market where diesel vehicles were particularly popular compared to other overseas markets, but recently, as consumers turn their attention to eco-friendly vehicles, the decline in sales is expected to continue."

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