Beloved by Koreans, 'BMW, Benz'... "We Won't Buy Them" Why Suddenly?

by Choi Daeyul

Published 06 Mar.2024 10:29(KST)

Updated 07 Mar.2024 10:37(KST)

Sales in January and February Hit Lowest Since 2014

The number of newly registered imported cars last month was recorded at 16,237 units. Compared to February of last year, this represents a decrease of about 24%. The industry views this decline in sales volume as a result of recent weakened consumer sentiment.

11th Generation Completely Redesigned Model 'Mercedes-Benz The New E-Class' <br>[Image Source=Yonhap News]

11th Generation Completely Redesigned Model 'Mercedes-Benz The New E-Class'
[Image Source=Yonhap News]

According to the imported passenger car registration statistics released by the Korea Imported Automobile Association on the 6th, the number of new registrations last month was the lowest in five years since February 2019 (15,885 units). Typically, February is considered an off-season for new car sales due to the uncertainty of electric vehicle subsidies and overlapping holidays. The conclusion of brand-specific promotions concentrated at the end of the year also had an impact.

Even considering these factors, last month’s sales volume was unusually low compared to the past. The total imported car sales for January and February this year amounted to 29,320 units, marking the first time in 10 years since 2014 (28,701 units) that the sales volume for the first two months of the year fell below 30,000 units.

[Photo by Yonhap News]

Most brands experienced a decline in sales compared to the previous year. BMW recorded over 6,000 new registrations, ranking first among brands, but this was about a 5% decrease compared to February last year. Top-selling brands like Mercedes-Benz and Lexus saw sales drop by approximately 35% and 32%, respectively. Volvo, Mini, Toyota, and Ford increased their sales compared to the previous year. Tesla, which sold only one unit in January, sold 174 units last month.

By fuel type, hybrids accounted for more than half of sales again last month, following January. The number of imported hybrid cars sold last month was 8,876, representing 54.7% of the total new registrations.

The sluggish new car sales trend is similar for domestic cars. According to data compiled by market research firm Kaizyu, the number of newly registered domestic cars last month was 95,913 units, a 16% decrease compared to the same period a year ago. The industry anticipates that the domestic new car sales market will likely contract this year due to the resolution of accumulated demand for new cars and burdens such as interest rates.

[Photo by Yonhap News]

The best-selling imported car last month was the BMW 520 model, with 1,384 units sold. The Mercedes E300 4MATIC followed with 860 units, and the BMW 530 xDrive with 639 units. Among electric vehicles, the BMW iX3 was the top seller, with 206 new registrations.

Jung Yoon-young, Vice Chairman of the Imported Car Association, explained, "Despite a decrease in business days due to the Lunar New Year holidays, new registrations of imported passenger cars last month increased compared to the previous month, supported by some brands securing inventory and the effect of new models."