Imported cars' average sales price peaks in five years

By Park Jin-hai

The average price of imported cars has hit a five-year high of nearly 63 million won, according to the Korea Automobile Importers & Distributors Association, Monday.

A total of 179,120 imported cars, worth 11.22 trillion won, were sold in the first nine months of this year. The average price was 62.87 million won, the association said.

The price has been on the downside over the past five years after peaking at 64.41 million won in 2009.

Industry watchers say the rise stems from increased sales of premium cars priced at more than 100 million won.

Although the local industry has seen a rise in customers in their 30s and 40s who have bought cars in the 30-40 million won range, the expanded presence of luxury cars has pushed up the figure.

Total sales of imported vehicles priced over 100 million won reached 17,211 units between January and September, up 58.1 percent from 10,887 units year-on-year. This compares with average imported car sales increase of 22.8 percent.

A significant problem exists in the large gap between sale prices and the actual cost.

According to the Korea Automobile Manufacturers Association, the average cost of an imported car was 32.72 million won in 2014 and 34.3 million won this year, showing about a 28 million won price gap from the sticker price.

As the average sale price has risen, the accumulated sales of imported cars have surpassed the nation’s No.2 carmaker Kia Motors’ local sales.

Kia Motors, the sibling of Hyundai Motor, had 8.19 trillion won in sales in the past nine months in the local market, while imported car sales reached 11.2 trillion won.

“As the influence of the imported carmakers has been raised disproportionally, they are not minorities anymore,” an industry insider said. “As the main market player of the Korean auto industry, they should be more engaged in corporate social activities now.”