Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Race for 4th place heats up in Korean import car market
Lexus ES300h hybrid sedan / Courtesy of Lexus Korea
By Lee Min-hyung
Lexus, Volvo and Audi are racing to secure the fourth sales spot and solidify their luxury identity in Korea's lucrative imported car market, dominated by BMW, Mercedes-Benz and Tesla.
According to data from the Korea Automobile Importers & Distributors Association (KAIDA), BMW led foreign car sales between January and August with 51,228 vehicles, followed by Mercedes-Benz with 41,379 and Tesla with 34,543.
Lexus secured the fourth spot among best-selling foreign automakers between January and August, selling more than 10,200 vehicles, up 14.9 percent from a year earlier, driven by strong sales of its ES 300h hybrid sedan.
However, it is too early to say if the carmaker will be able to maintain its position through the year, as Volvo and Audi are also showing strong growth.
Volvo came in fifth with sales of some 9,000 vehicles during the same period. Volvo maintained the fourth position in the foreign car market here last year.
Volvo's EX30 electric SUV / Courtesy of Volvo Car Korea
Volvo Car Korea, however, continues to pose a threat to Lexus Korea, as its sales are rapidly rising with aggressive launches of new vehicles. In July, the carmaker launched the newest models of its flagship XC90 SUV and S90 sedan. It went on to diversify its sales portfolio by releasing its best-selling XC60 SUV the following month.
The effect of the new releases is clearly seen in the firm’s double-digit sales growth. In August, the carmaker sold 1,313 vehicles, up 29.4 percent from the previous month. The carmaker also launched the all-electric EX30 SUV last month.
Audi Korea sold a total of 7,432 vehicles in the first eight months of the year combined, up 34 percent from the previous year. The carmaker suffered a crisis last year due to a lack of new vehicles, but reshaped its strategy by introducing diverse new models of gasoline-powered and electric vehicles.
Audi's A6 e-tron sedan / Courtesy of Audi Korea
Industry officials say the battle for fourth place remains competitive, as Lexus’ two rivals have more new models than the Japanese automaker.
“Given the rapid sales rebound, Audi Korea will be able to regain its old glory soon by achieving accumulated sales of 10,000 vehicles this year on healthy sales growth of its electric models— the Q4 e-tron electric SUV and the A6 e-tron sedan,” an official from an import carmaker said.
“However, it remains to be seen which company will secure the spot this year, as Lexus’ sales are backed by strong hybrid demand, and Volvo is also enjoying sales growth with new vehicle launches."