Premium import car sales set for milestone

Foreign automakers expected to sell 10,000 units priced more than 100 million won in 2012


Yearly sales of import cars with a price tag above 100 million won ($90,100) are expected to surpass 10,000 units for the first time in the nation.

Amid the brisk sales of premium vehicles despite the economic slowdown, the import automobile industry saw its sales of cars priced more than 100 million reach 8,035 units for the first nine months of 2012, up about 10 percent over the same period last year.

According to the Korea Automobile Importers & Distributors Association, yearly sales of the premium import cars rapidly increased over the past few years to post 8,317 units in 2010 and 9,939 units in 2011.

Mercedes-Benz topped the list in the premium car sales during the January-September period with sales of 2,699 units, outperforming BMW with 2,466 units.

Audi ranked third with 1,277 units, followed by Porsche with 550 units, Jaguar with 318 units, Lexus with 261 units, Land Rover with 240 units, Bentley with 89 units, Volkswagen with 64 units and Cadillac with 39 units.

Mercedes-Benz Korea posted a sharp growth in sales of the CLS-Class whose consumer prices range between 104.3 million won and 105 million won.

The German company’s sales of the CLS-Class models surged by around 10 times on a year-on-year basis as the premium sedan gained growing popularity among local consumers for its innovative designs.

Though the automaker saw its sales of the S-Class models inch down this year, Korea was the fourth-largest consumer of the Mercedes-Benz S-Class last year, following Germany, the United States and China.

For BMW, Korea was the fifth-largest consumer of the BMW 7-Series in 2011, following Germany, the United States, China and the United Kingdom.

Audi also saw its premium vehicle sales, including the A8 models, increase at a steady pace, while Lexus reported a lackluster performance compared to past years.

Meanwhile, a series of import cars with relatively low price tags are aggravating the worries of Korea’s automakers, who are suffering a continuing drop in month-on-month vehicle sales at home.

“Cheap import cars have emerged as a threat not only to Hyundai-Kia but companies which operate manufacturing factories in Korea ― GM, Renault Samsung and Ssangyong,” said an executive in the local automotive industry.

Among the foreign players aggressive in introducing low-priced models are Nissan, Ford, Toyota, Citroen and Honda.

BMW Korea also recently launched the new 1 Series hatchback, which the German luxury carmaker says will reenergize competition in the nation’s premium compact car market.

A total of six rear-wheel models, consisting of the five-door Urban Line and the more dynamic Sports Line, were unveiled for the Korean launch.

The models range from 33.9 million won to 46.8 million won. This marked the first time for BMW Korea to introduce cars in the 30 million won range.

“We aim to sell 200 units this year and 3,000 units next year. We have high expectations that the new 1 Series will give new breath to the premium compact car market,” said BMW Group Korea CEO Kim Hyo-joon.

With the domestic compact car market heating up with new models introduced by local carmakers recently, industry watchers say the entry of BMW cars will further fuel the competition.

Smaller vehicles account for almost half of all import cars sold, according to the Korean Automobile Importers & Distributors Association.

In terms of prices, sales of imported cars between 30 million won and 40 million won took up about 30 percent of the local market, a nearly 10 percentage-point increase over the past five years.

According to a survey agency, the proportion of Korean consumers, willing to purchase import cars, had reached an all-time high of 15.5 percent this year.

Based on its recent poll on 95,012 consumers nationwide, Marketing Insight released the yearly figure that shows drivers’ preference since 2001.

The figure, which could be a barometer for growth potential of the import vehicle industry, has continued to climb since the 2008 global financial crisis ― 10.8 percent in 2009, 11.6 percent in 2010 and 13.3 percent in 2011.

“Consumers’ intention toward import cars was in proportion to market share of import brands,” said Lee Kun-hyo, an executive director of Marketing Insight.

They captured 4.9 percent of the nation’s automotive market in 2009, 6.9 percent in 2010, 8 percent in 2011 and 10 percent as of August 2012.

By Kim Yon-se (kys@heraldcorp.com)