South Korean car buyers are increasingly turning to diesel models with
foreign nameplates.
According to the Korea Automobile Importers and Distributors Association,
imported-vehicle sales hit a record 14,953 in July, up 17% from June and 39%
from a year earlier. Foreign cars represented 12.9% of the market, up from 9.6%
a year earlier.
In the first seven months of the year, Koreans bought 89,440 foreign cars, up
from 73,007 in the first seven months of 2012.
A trade agreement with the European Union may have helped boost imported-car
sales by cutting prices through tariff reductions. Under the agreement, tariffs
were cut as of July 1—to 1.6% from 3.2% for large and midsize cars and to 4%
from 5.3% for small cars.
And when they buy a foreign car, Koreans like it to be German—and most
particularly, to be a BMW. It topped the list in July once again, selling 3,023
vehicles. Compatriots held the next three positions: Volkswagen AG (2,696),
Mercedes-Benz (2,567) and VW unit Audi (1,776).
To find a non-German maker required going down the list to fifth place—and a
distant fifth at that: Toyota Motor Corp., with 737 vehicles sold.
Among individual models, four of the top five were diesel cars: the BMW 520D,
last year’s No. 1, with 848 sold; the VW Golf 2.0 TDI (688); the VW Tiguan 2.0
TDI BlueMotion (543); and the Mercedes-Benz E220 CDI (530).
It testifies to Korean car buyers’ interest in fuel efficiency at a time of
fluctuating fuel prices, as diesel powered cars boast about 30% better fuel
efficiency than gasoline engines of similar size. More than 60% of the imported
cars sold last month were diesels. Regular gasoline-powered cars accounted for
nearly all the rest, although hybrids did have a 3.1% share.
More than 52% of 527 people surveyed recently by SK Encar, a used-car
website, said they would buy a diesel-powered vehicle, compared with 27.1% who
favored gasoline and 13.3% wanted a hybrid.
Looking to catch a trend, Hyundai Motors said that Tuesday it would unveil
the new Avante with diesel engines.
