South Korea’s automakers, import car dealers offer discounts at year-end

Audi dealers are offering a 21-percent markdown price for A6 [Source : Audi]

South Korea’s major automakers and imported car dealers are planning large promotions at the end of the year, as demand for new cars slowed amid soaring interest rates even as chip shortages have eased. In addition, they hope to remove existing inventories before new models come to the market.

According to the automobile industry on Monday, imported car brands are offering aggressive discounts. Audi dealers are selling A4 and A5 at a 15 percent discount. They are offering a 21-percent markdown price for A6. BMW has also prepared a discount promotion, with 12 percent lower price for its core 5 Series.

Homegrown brands have come up with promotional packages linked to low-rate installment plans. Renault Korea is offering an interest rate of 4.9 percent for all its models. Hyundai Motor is giving a special discount of 1 million won ($767.81) for its compact Casper SUVr. “The recent trend in the sector will help stabilize automobile prices. Electric vehicle (EV) prices have dropped in North America,” said Lee Hang-kyu, a researcher at the Korea Automotive Technology Institute.

Used car prices are falling. Mercedes-Benz E-Class Diesel sedans with 60,000km miles are priced at 49.16 million won on average this month, 10.5 percent down from January. Hyundai Motor’s Genesis 80 gasoline models were down 6.9 percent to 37.07 million won during the same period.