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Forecasting & Planning
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Automotive
Research Analyst
IHS Markit perspective
New vehicle sales in South Korea, including passenger vehicle imports, surged 23.8% y/y to 160,370 units during October, up from 129,562 units in October 2017, according to figures released by automakers in the country, as reported by the Yonhap News Agency, the Korean Automobile Importers' and Distributors' Association (KAIDA), and data compiled by IHS Markit. In the year to date (YTD), total vehicle sales in the country stand at 1.48 million units, up 1.1% y/y.
Hyundai and Kia maintained their lead in October with a combined market share of 70.1%. Meanwhile, imported passenger vehicle sales grew 23.6% y/y to 20,813 units in October, accounting for 13.0% of new vehicle sales in the country, according to data released by the KAIDA and reported by the Yonhap News Agency.
Outlook and implications
The surge in the South Korean new vehicle market during October can be attributed to the reduction in individual consumption tax on passenger vehicles to 3.5% from 5% until the end of 2018, strong demand for new models, and a low base of comparison.
IHS Markit expects South Korea's light-vehicle market, including passenger vehicles and LCVs, to be driven this year by new model launches, a recovering economy, the resumption of sales of VW Group models in the country, and the reduction in individual consumption tax on passenger vehicles. We forecast that light-vehicle sales in the country will grow by 2.0% y/y to 1.79 million units in 2018.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.