[THE INVESTOR] Sales of imported cars in South Korea declined 7.6 percent in 2016 from a year earlier, hit by a sales ban of Audi and Volkswagen cars following the automaker’s emission-rigging scandal, industry data showed on Jan. 5.
According to the data compiled by the Korea Automobile Importers and Distributors Association, 225,279 new imported cars were registered last year, compared with the previous year’s 243,900 units.
“The imported auto market in 2016 declined from 2015 due to the Volkswagen scandal that led to sales slump of diesel cars and ban of certain models after the annulment of the certification,” said Yoon Dae-sung, the executive director of KAIDA.
It was the first year in seven years the imported auto industry has witnessed negative growth since the 2009 global financial crisis.
In August, South Korean government halted sales and imposed hefty fines on 80 vehicle VW and Audi models after the German automaker submitted fake emissions and noise level results to the ministry with the intention to sell here.
Meanwhile, German luxury automaker Mercedes-Benz’ sales spiked 19.9 percent on-year to 56,343 units in 2016 to become the No. 1 foreign brand in the local market, thanks to the popularity of the new E-class models. Mercedes-Benz beat its German compatriot BMW for the first time in eight years.
BMW ranked second, selling 48,459 units last year, up 1.2 percent from a year earlier.
Scandal-hit Audi and Volkswagen followed the list, with Audi selling 16,718 units, down 48.6 percent on-year, and Volkswagen selling 13,178 units, down 63.2 percent.
Breaking down by countries, German carmakers carved out the largest portion, taking up 61.2 percent of all newly registered cars, followed by Japanese cars with 15.7 percent. British cars made up 10.3 percent and the share of US cars stood at 8.1 percent.
Diesel-fueled cars took up 58.7 percent of all foreign car sales, while gasoline cars came in second with 33.9 percent, followed by hybrid and electric vehicle, at 7.2 percent and 0.2 percent, respectively.
By Ahn Sung-mi (sahn@heraldcorp.com)