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Korea Herald
16 hours ago
- Automotive
- Korea Herald
Volvo's XC40 tops rivals in H1 sales as limited editions fuel demand
Volvo's compact sport utility vehicle, the XC40, topped sales in its segment for the first half of this year, according to the Korea Automobile Importers & Distributors Association on Friday. The XC40 sold 1,105 units between January and May, outpacing strong competitors such as the BMW X1 (1,063 units), MINI Countryman (716 units) and Audi Q3 (475 units). Since its global debut in 2017, the XC40 has consistently been a bestseller, particularly in Europe, where it has led the premium compact SUV segment for four consecutive years since 2020. It was also named the 2018 European Car of the Year. Despite being Volvo's entry-level SUV, the XC40 features flagship-level specifications. It comes equipped with advanced driver assistance systems such as Pilot Assist, as well as high-end interior elements including Driftwood inlays, a crystal gear shift knob by Swedish brand Orrefors and Harman Kardon premium sound system. The model also includes an integrated Tmap infotainment system tailored for Korean consumers. Volvo Car Korea has further enhanced the customer experience with a five-year or 100,000-kilometer warranty, complimentary consumables replacement, 15 years of free over-the-air updates, and a five-year 5G digital package. Priced at 54.9 million ($40,100), the top Ultimate trim offers a more affordable option compared to its overseas counterparts, including the US and UK, up to 29 million won cheaper. Online-exclusive editions have also amplified the model's appeal. The 100 units of the latest XC40 Black Edition sold out within just 15 minutes of its release on Tuesday. Earlier limited editions, such as the Sage Green and Dark Editions, also sold out within minutes of launch. Volvo Car Korea has maintained its position as the top importer since January, with consistent monthly sales of over 1,000 units, competing closely with Tesla, Lexus and Porsche in the best-selling segment of the Korean import car market.
Korea Herald
4 days ago
- Automotive
- Korea Herald
From stigma to status symbol: Lime-green plates lose bite after a year on the road
Corporate registrations of high-end imported cars jump 27%, raising questions over deterrent effect The lime-green license plate, introduced last year to curb the misuse of high-priced corporate vehicles, is facing growing skepticism over its effectiveness, as it is increasingly seen as a symbol of success rather than a social stigma. The number of luxury imported cars registered under corporate names has jumped 27 percent this year, following last year's sharp decline, which was widely attributed to the new plate system. The rebound has raised concerns that vehicles intended for private use may once again be registered as corporate cars. According to the Korea Automobile Importers & Distributors Association, the number of imported cars priced over 100 million won ($73,000) registered under corporate names rebounded to 16,351 between January and May this year, up from 12,795 during the same period last year. The proportion of corporate registrations among all imported vehicles at that price point also rose to 58 percent, up from 54 percent the previous year. Luxury carmakers with higher-priced models showed even greater shares of corporate registrations. Ferrari and Lamborghini, whose vehicles are priced over 100 million won in Korea, each sold 158 units between January and May — with corporate purchases accounting for 89 percent and 78 percent of those sales, respectively. They were followed by Maserati at 73 percent, Rolls-Royce at 71 percent, and Bentley at 67 percent. The so-called German Big Three — BMW, Mercedes-Benz and Audi — also recorded corporate registration rates exceeding 50 percent. This rise follows a notable decline in the same period of 2024, when the number of such vehicles fell by 30 percent year-on-year, and the corporate registration ratio decreased from 64 percent the year before. These vehicles fall under the lime-green license plate policy, which applies to newly registered corporate cars priced over 80 million won. The system was designed to make such vehicles more easily identifiable to the public, based on the belief that increased visibility would lead to more reporting of non-business use and, in turn, help deter misuse of corporate vehicle benefits. Under Korean income tax law, businesses can deduct up to 15 million won per year from their taxable income by claiming vehicle-related expenses as business costs, without objective proof of business use, such as a driving log. While the industry has consistently denied that the new license plate had any meaningful impact, arguing that the earlier decline in corporate registrations was driven by a shortage of new models and global supply chain disruptions, the market response to the scheme was still noticeable. Fearing detection, some even tried to evade the distinctive plates by manipulating contract prices below the 80-million-won threshold or registering vehicles under personal insurance before switching to corporate coverage, according to Rep. Kim Eun-hye of the main opposition People Power Party. However, the recent rebound in the high-priced corporate vehicle registrations reflects an apparent decrease in such worries, experts say. 'When it was first introduced, it was effective. We often refer to it as a 'nudge phenomenon,' where people felt psychological pressure to comply,' said Kwon Yong-joo, an automotive design professor at Kookmin University. 'But as more people began receiving high-end vehicles under corporate names, it started to feel normalized, like, 'oh, I guess it's okay for us to drive them too.'' This diminishing sense of concern is also felt on the ground. 'Some buyers of sports cars (which are generally not considered business-oriented) may have initially been wary of the regulation, but that seems not to be the case now,' said an official from a luxury automobile brand. 'There is little customer reaction to the license plate these days, likely because time has passed since the system was introduced,' said another official at an imported car dealership. Experts are calling it a predictable failure, arguing that the color change did little more than incur additional costs, including the need to recalibrate traffic cameras. 'The policy seemed intended to create a stigma effect through the distinctive color, but now, some even treat it as a symbol of success,' said Kim Pil-su, a professor of automotive engineering at Daelim University, referring to social media posts that praise how the lime-green plate complements a luxury car's design. 'The misuse deterrence system should start from the basics, clearly defining where corporate vehicles are permitted to operate, and thoroughly managing driving logs and GPS records.'
Yahoo
11-06-2025
- Automotive
- Yahoo
South Korea imported vehicle sales rise 16% in May
Sales of imported light passenger vehicles in South Korea rose by over 16% to 28,189 units in May 2025 compared with 24,209 units a year earlier, according to registration data released by the Korea Automobile Importers & Distributors Association (Kaida). The association attributed last month's strong market performance to improved inventory of new models, following shortages in previous months. Hybrid vehicles accounted for over 53% of total import sales last month, followed by battery electric vehicles (BEVs) with 34% and internal combustion engine (ICE) models with just under 13%. Import sales in the first five months of the year increased by 10% to 110,341 units from 100,352 units a year earlier. Overall demand for new vehicles in South Korea remains sluggish, amid weak domestic economic growth and high consumer debt. Domestic sales of vehicles produced by the five main local manufacturers rose by just over 2% to 569,885 units in the same period, underpinned mainly by new models from Hyundai and Kia. German-owned brands accounted for almost 65% of total import sales year-to-date, with some 71,800 units combined, led by BMW with a 10% rise to 31,727 units, while its Mini subsidiary saw its sales plunge by 27% to 2,643 units. Together, the two brands accounted for 31% of total import sales. Mercedes-Benz saw its sales rebound by 14% to 26,538 units in this period, while Volkswagen Group reported a 24% jump to 10,791 units, thanks mainly to strong rebounds by Porsche and Audi. US EV maker Tesla saw its sales rose by 6% to 12,835 units year-to-date, while Volvo's sales fell slightly to 5,700 units. Toyota's sales fell by 5% to 3,691 units, while its Lexus division enjoyed an 18% rise to 6,364 units. Chinese automaker BYD, which officially entered the market earlier this year, has delivered 1,066 vehicles so far. The company said it aims to have 30 sales outlets in place by the end of the year. "South Korea imported vehicle sales rise 16% in May" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
06-06-2025
- Automotive
- Korea Herald
Tesla tops monthly imported car sales for 1st time in Korea
Tesla has claimed the top spot in monthly imported car sales in the South Korean market for the first time. According to data from the Korea Automobile Importers & Distributors Association on Friday, the US-based electric vehicle powerhouse sold 6,570 units in May, a 57.7 percent increase compared to the previous year. It outpaced Mercedes-Benz's 6,415 units and BMW's 6,405 units. The two German carmakers have traditionally dominated the top two positions in South Korea's imported car sector. Porsche and Lexus secured fourth and fifth places, selling 1,192 units and 1,134 units, followed by Volvo's 1,129 units in the same period. Tesla's stellar performance was driven by the strong demand for the newly launched Model Y. Released in April, this new flagship mid-size SUV sold 4,961 units, accounting for 94.9 percent of Tesla's sales. The Model Y Long Range, boasting approximately 500 kilometers driving range — 100 kilometers longer than the standard model — also sold 1,276 units. The EV maker's robust sales have partly boosted the overall domestic imported car market. Last month's imported car sales reached 28,189 units, marking a 16.4 percent increase from last year. The cumulative sales from January to May rose by 10 percent, totaling 100,352 units. 'The rise in new registrations of imported passenger cars in May can be attributed to a steady supply from certain brands and the impact of new model launches,' stated KAIDA Vice Chairman Jung Yoon-young. Although Jung did not specify Tesla as the key contributor, figures show Tesla's two Model Y variants were named as the first and third best-selling models, respectively. Industry insiders point to Tesla focusing its supply on Korea, which has likely led to a sales boost, amid global declines. From January to April, the company saw sales drops of 34.6 percent in Europe and 9.1 percent in North America.
Korea Herald
24-04-2025
- Automotive
- Korea Herald
Mercedes-Benz doubles down on high-end strategy in Korean market
At the 2025 Seoul Mobility Show, Mercedes-Benz Korea gave visitors a glimpse of where luxury driving is headed. Alongside its latest premium models, the brand introduced a range of personalized services designed to reflect the evolving tastes of Korean consumers. This initiative is part of Mercedes-Benz Korea's broader strategy to elevate its luxury positioning in 2025. By launching high-end vehicles and tailored experiences, the company continues to align with its global vision: 'The world's most desirable cars.' Leading the lineup was the Korean debut of the fully redesigned second-generation Mercedes-AMG GT — a bold, two-door coupe that delivers true sports car performance while staying rooted in the brand's signature design DNA. Also making its debut was the Mercedes-AMG CLE 53 4MATIC+ Coupe. With clean lines, powerful performance and cutting-edge technology, the model is set to launch in Korea in the second half of the year. Taking exclusivity to the next level, Mercedes-Benz Korea showcased the limited-edition AMG E 53 Hybrid 4MATIC+ Edition 1. With just 10 available in Korea, the model pairs hybrid innovation with striking design and is priced at 160.8 million won ($112,000). To meet growing demand for personalization, the brand also presented its flagship 'Manufaktur' customization program, giving discerning customers the opportunity to match every detail — from leather texture to interior finishes — to their individual tastes. Sales continue to underscore the brand's strong presence in Korea. The 11th-generation E-Class was once again the best-selling imported model in 2024, maintaining its top spot for the tenth consecutive year. The G-Class recorded a sales high of 2,613 units, with both the G-Class and Mercedes-Maybach surpassing 10,000 cumulative sales in the country. The S-Class also led sales in the imported full-size internal combustion sedan segment, according to the Korea Automobile Importers & Distributors Association. Since 2016, Korea has been the third-largest global market for the S-Class, following only China and the United States — further proof that Mercedes-Benz remains the preferred choice for Korea's luxury drivers.
