By Kim Hyun-cheol
Staff Reporter
The nation's leading automaker is concerned over export prices of its latest models in the face of public criticism on the general gap in prices of its products on domestic and foreign markets.
Hyundai Motor will launch its Genesis luxury sedan in the United States in June, but said its prices have yet to be confirmed. Local prices of its products are usually unveiled with their launch. Once launched, the sedan is expected to compete with other classy marquees like BMW and Lexus on the world's biggest market.
A basic 3.8-liter engine capacity model is estimated to sell for between $30,000 and $35,000. On the local market, prices of models with a 3.3-liter engine capacity vary from a low of 40.5 million won ($41,192) to a high of 55.2 million ($56,143).
However, the price gap still remains wide with the delivery cost included. The gap reaches up to over 20 million won in high-class models.
As for Sonata, the manufacturer's No. 1 model in Korea, a 2.4-liter engine edition sells for between 26.5 million won and 29.5 million won, while the price drops to $19,545 in the United States.
Last year, a lawyer even filed a complaint about domestic prices of Hyundai Motor and Kia cars with the Fair Trade Commission, claiming they are too high compared to exported ones. The antitrust agency declined to reveal the progress of the case.
Some customers are purportedly considering a trick of ``counter-importing'' export vehicles via American dealerships. Technically, a full-option model can result in a saving of more than 10 million won despite a tariff of as much as 10 million won.
Hyundai Motor denied lingering skepticism on the price structure, explaining export prices depend on many factors like tax, exchange rates and characteristics of each market.
``We are well aware of the suspicion from customers, but it's actually a myth,'' an official of Hyundai Motor said. ``They don't pay purchase tax in the United States at all while we pay some 24 percent of it here. Considering costs for basic packages to pay, there is few difference in prices in both markets."