Sales of imported light passenger vehicles in South Korea increased 1% to 22,263 units in August 2024 from 21,977 units a year earlier, according to registration data released by the Korea Automobile Importers & Distributors Association (Kaida).
Overall demand for new vehicles has weakened this year, with domestic sales slightly lower at 106,149 units last month and down by 10% at 889,765 year to date (YTD) as the country’s heavily indebted consumers reined in spending on big items. This, along with rising concerns over battery safety and residual values, has significantly affected sales of battery electric vehicles (BEVs).
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On a like for like basis, sales of imported BEVs plunged 35% to 1,907 units in August, with a major fire in Incheon early in the month, which started in a Mercedes-Benz EQE, having a major impact on sentiment in this segment. Including Teslas, sales of imported BEVs amounted to 4,115 units last month.
Overall sales of imported light passenger vehicles fell by 3% to 169,892 units YTD from 175,177 a year ago with overall volume supported by the inclusion of Tesla’s 22,268 sales YTD compared with none last year.
The share of German owned brands has fallen to below 64% of total import sales as a result, according to Kaida’s latest data, despite the recent launch of important new models by Mercedes and BMW.
BMW sales dropped 6% to 47,390 units YTD despite the launch of the new 5-series sedan earlier this year, while Mini sales were down 15% at 5,306 units.
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By GlobalDataVolkswagen reported a 12% decline to 5,156 units while Porsche sales dropped by 36% to 5,322 units and Audi sales plunged by 56% to 5,534 units.
Mercedes-Benz sales fell 20% to 5,286 units in August, with BEV sales plunging 82% to 133 units, while YTD volume was down 16% at 39,666 units despite the launch of the new E-series sedan earlier in the year. Volvo sales were 10% lower at 9,841 units.
Toyota reported a 18% sales increase to 6,281 units while Lexus sales were down by 3% at 8,884 units following strong growth last year.
Domestic manufacturers and a rising number of import brands have agreed to disclose information about their BEV batteries, including supplier names, to increase transparency and help alleviate growing concern over battery safety.
Importers were estimated to have accounted for close to 20% of BEV sales YTD, led by German brands including Mercedes-Benz and BMW with BYD expected to enter the market later this year.
