Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Toyota, Lexus hurt by return of Audi Volkswagen
Toyota Motor Korea CEO Nobuyuki Takemura.
By Park Jae-hyuk
By Park Jae-hyuk
Toyota and its luxury brand, Lexus, have suffered declining sales in Korea since Audi Volkswagen resumed selling its cars here this year, data from the Korea Automobile Importers & Distributors Association (KAIDA) showed Friday.
According to the KAIDA, Toyota remained in fourth place among imported brands in terms of sales, since it dropped to fourth in April from third in March.
Sales of Toyota vehicles have declined for three consecutive months, from 1,712 cars in March to 1,709 in April and 1,455 in May.
Lexus has stayed in seventh place for two consecutive months, after falling from third in January to fourth in February and fifth in March.
On the contrary, Audi returned to third place in April, selling 2,165 vehicles.
Its affiliate, Volkswagen, took the same spot in May, selling 2,194 vehicles.
The Audi A6 35 TDI was the best-selling imported car with 1,405 sales in April, followed by the BMW 520d with 1,357 sales and the Mercedes-Benz E200 with 1,257.
Although Audi ranked fifth last month with only 1,210 vehicles, down 44.1 percent from a month earlier, the A6 35 TDI was still among the top three imported models last month with 831 cars sold.
The second-best-selling imported car last month was the Volkswagen Tiguan 2.0 TDI with 1,200 vehicles sold, following the 520d with 1,239.
The Lexus ES300h luxury sedan / Courtesy of Lexus
Since the Lexus ES300h became the third-best-selling imported vehicle in March with 822 cars sold, following the E200 with 2,736 and the 520d with 1,610, neither Toyota nor Lexus models have made the top three.
When Audi Volkswagen was banned from selling cars in Korea last year over the emissions scandal, Lexus and Toyota ranked third and fourth among imported brands in terms of annual sales.
The two sold 12,603 and 11,698 cars last year, respectively.
With the release of the A4 in the second half of this year and aggressive discounts, Audi aims to sell 15,000 vehicles in Korea this year.
It is also aiming to sell 20,000 cars next year and 30,000 in 2020.
If Audi achieves its goal this year, it will likely place third among foreign brands, overtaking Lexus and Toyota.
Considering that Volkswagen's new Tiguan and Passat have been selling well, industry officials expect the four German brands ― Mercedes-Benz, BMW, Audi and Volkswagen ― will dominate Korea's imported car market again.
Following Audi Volkswagen's return, German brands accounted for 62.9 percent of Korea's imported car market last month, up from 55.1 percent a year earlier.
Japanese brands fell to 15.7 percent from 19.2 percent in the same period.