European car brands see growth in South Korea
High-end European automotive brands have achieved positive results in South Korea in recent months, boosted by tax reductions and by a slump in sales for Japanese brands.
Consumers in South Korea bought a total of 128,236 imported cars in the first six months of 2020, an increase of 17% compared to the same period last year. Together three German brands, Audi-Volkswagen, BMW and Mercedes-Benz, claimed 65% of those sales, posting year-on-year growth of 44%. In parallel, sales of Japanese brands fell by 57%.
The authorities in South Korea have lowered the level of sales tax applicable to imported cars. European brands have benefited more than their Japanese rivals because of trade tensions between the two Asian countries.
In 2018, the supreme court in South Korea ordered some Japanese companies to pay reparation to survivors of forced labour from the 1940s. This has led to Japan placing restrictions on certain exports over allegations of intellectual property breaches.
