End of tax cut casts shadow on H2 auto sales

[THE INVESTOR] The outlook for South Korea's automotive market in the second half of the year appears uncertain with the special tax cut ending as of July 1. The special consumption tax cut which was introduced to boost consumption ended on June 30. The government had cut the special consumption tax rate from 5 percent to 3.5 percent in August 2015 as a temporary measure. While the measure contributed to first half sales rise, its ending is expected to weigh down local carmakers in the second ha

July 1, 2016

GM Korea domestic sales set record in June

[THE INVESTOR] GM Korea’s monthly domestic sales climbed to a record high in June aided by rising sales of the city car Spark and midsized sedan Malibu, the company announced on July 1. The company’s figures showed that domestic sales came in at 18,058 units in June, rising 47.6 percent compared to the same month last year. The figure is the highest since GM Korea was established in 2002. Sales of the Malibu sedan more than tripled from a year ago to come in at 6,310 units, while Spark sales inc

July 1, 2016

Luxury imported cars stumped by tougher corporate vehicle rules

[THE INVESTOR] The sales of imported automobiles for corporate use has plunged this year, hamstringed by tougher regulations of corporate vehicles. Industry data showed on July 1 that the number of imported cars registered to corporations during the first five months of the year dropped 15.6 percent compared to the same period last year. The fall has been attributed to the regulation changes aimed at preventing corporate vehicles being used for personal purposes. From January to May, 33,071 impo

July 1, 2016

Hyundai, Kia eye SUV expansion in US

[THE INVESTOR] Korea’s major automakers are set to strengthen their sport utility vehicle lineup in the US market, local news reported. Hyundai Motor and Kia Motors, which currently sell four SUV models sold in the US, are planning to double the number by 2020, an industry insider was cited in the report. Against the rising demand for SUVs in the US, sales of Hyundai’s Santa Fe and Tucson in May jumped by 88 percent and 90 percent on-year in the country, respectively, while sales of Kia’s Sorent

July 1, 2016

Mando receives top European quality rating

[THE INVESTOR] South Korean auto parts maker Mando announced on June 30 that products manufactured at its plant in Poland were awarded the top quality rating by the European Foundation for Quality Management.Mando said that it is rare for EFQM to award the top rating in the first assessment, and this reflects the fact that there were no quality issues with the 1.6 million caliper brakes supplied to Volkswagen over the past year.Located in Walbrzych, Mando’s Polish operations began production in

June 30, 2016

Hyundai, Kia’s China market share show first on-year rise

[THE INVESTOR] Hyundai Motor Group’s share of the Chinese market rose in May from a year ago aided by rising SUV sales. According to industry data, the combined market share of Hyundai Motor and Kia Motors came in at 9.2 percent in May, rising 0.2 percentage points compared to the same month last year. The data showed that the two carmakers sold 150,450 units, excluding small commercial vehicles, in May. Compared to May 2015, the figure is an increase of 16.6 percent. Much of the rise was accoun

June 30, 2016

VW has no plans to compensate Korean consumers

[THE INVESTOR] With German automaker Volkswagen AG deciding to pay US owners of defective vehicles as much as US$ 10,000 per car, Korean consumers are furious over the lack of similar compensation measures for them.Volkswagen decided to pay a total of US$ 14.7 billion to settle emission cheating claims with owners of 475,000 affected vehicles in the US on June 28 (local time). In response to this settlement, Audi Volkswagen Korea reaffirmed that it has no plans to compensate Korean consumers, be

June 29, 2016

Prosecutors to summon ex-VW Korea chief on July 5

[THE INVESTOR] Prosecutors will summon Park Dong-hoon, former head of Audi Volkswagen Korea, on July 5, to question him over the automaker’s emission scandal. Seoul’s Central District Prosecutor’s Office on June 29 said it will bring Park as a key witness to the case over VW cheating pollution emissions test for defective units. During investigation, if prosecutors find out Park took part in the scandal or ordered others to manipulate documents of emission and noise level tests, his status could

June 29, 2016

Hyundai planning Genesis marque electric cars by 2020

[THE INVESTOR] Hyundai Motor is planning to launch electric vehicles under its luxury marque Genesis in 2020.According to Hyundai Motor on June 29, the company plans to add electric cars to the Genesis lineup as part of its eco-friendly vehicle strategy. On June 29, a local daily reported that Hyundai Motor is eyeing the high-end electric vehicle market. Genesis G90.An unnamed high-level official of Hyundai Motor was quoted by a local daily as saying that the company is planning to launch high-p

June 29, 2016

Concerns grow for diesel-heavy Ssangyong

[THE INVESTOR] Ssangyong Motor is likely to be the most affected in sales by the increased public concern over diesel vehicle’s impact on air pollution, as well as the government’s push to curb diesel-fueled cars as part of measures to counter fine dust in the country, local news reported on June 28. From January to May this year, a total of 40,946 cars were sold by Ssangyong Motor, the Korean unit of Indian auto giant Mahindra & Mahindra. Among them, 31,237 units, or 76.3 percent, were diesel-f

June 29, 2016

Hyundai Genesis sponsors major US golf tournament

[THE INVESTOR] Hyundai Motor announced on June 28 that it will sponsor a major PGA tournament in Los Angeles from next year with its entry-level luxury brand Genesis. The tournament, held at the Riviera Country Club, will be named the Genesis Open from 2017, the carmaker said. The tournament will be organized by Tiger Woods Foundation. The tournament being sponsored by Hyundai Motor is one of the major events in the PGA tour, where golf legend Jack Nicklaus made his professional debut. It also s

June 28, 2016