By Park Jin-hai
The sales of imported cars in the local market will grow 14.8 percent next year, according to a report by the Korea Automotive Research Institute (KARI) released on Sunday.
The research arm of Hyundai Motor Group said foreign cars’ encroachment will grow in 2015, saying, “Appreciation of local currency and free trade agreements will give imported car brands price advantages, drawing more customers to them.”
It forecast that imported cars will sell a total of 225,000 units next year.
In particular, the sales for environmentally friendly cars such as hybrid cars will become stronger and we will see more Japanese automakers upping their marketing strategies aided by the weak yen.
Meanwhile, it also predicted that next year's overall automobile sales will reach a record high of 1.65 million, up 2 percent from this year.
The amount is surpassing the 1996 record, when annual sales stood at 1.64 million.
KARI said next year's increase will stem from the growing number of older cars on the road that need to be replaced, a rise in demand for SUVs and new vehicles hitting the market.
The think tank said sales of small or mini cars, helped by various incentive programs, will rise, while midsize cars will decline as more people opt for SUVs.
It said the global car market will advance 4.2 percent to 87.2 million units in the new year, with growth being fueled by China and India. It predicted that car sales in the two countries will grow around 9 percent in 2015. Sales in Europe will also rise, along with Brazil, the report predicted.
KARI said that South Korean carmakers need to be on alert in 2015, especially since European carmakers, such as Volkswagen, are expected to expand their market presence in China.
China is the largest market for South Korean cars, and has contributed to the steady growth of Hyundai Motor and Kia Motors, the country's two largest carmakers.