Why Does the Automotive Market in Korea Grow Exponentially?

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Despite the pandemic condition, the automotive market in Korea has grown even better in the last few years. 

It’s since the automobile industry in this country is recently known to be the top five biggest passenger cars producers worldwide. Even this industry makes up 12 percent of the entire employment in the country. 

The Reasons between the Growths of Automotive Market in Korea

There are several reasons that contribute to the achievement of the automotive market in this country to have better economic growth recently. Let’s take a look at some of these factors below. 

  • The Increase of Domestic Automotive Sales

Korea market analysis has shown that some types of the auto are still expected to grow in the vehicle market this year. 

The automakers in this country found out the raise by 6.2 percent of domestic automotive sales from January to December last year. 

Although South Korea was known to be the early nation that was impacted by the covid-19 spread, this country also shows a faster recovery in the market. 

South Korea also received slower demands of automobile exports due to this condition but the demand for domestic vehicles remained stable in 2020. 

This strong demand cannot be separated from a number of factors such as the increased requirements for personal mobility, the availability of incentives for electric cars, and huge promotions of new car model launches. 

  • Passenger Car Models on Trend

The domestic car brands dominate the top 10 car sales volume since 2019. Among the most popular passenger cars that placed the highest positions were Hyundai, Sonata, and Grandeur. 

There is even an auto brand that targets women drivers such as Tivoli. 

This brand designed a specific car model that is suitable for women with its large space inside so that it can accommodate their children while driving. 

Hyundai and Kia are two brands that always place the top position in the market sales. However, some imported cars also contribute to market sales.

  • Perception Shifting of Car Ownership

A few years back then, passenger car sales in South Korea were known to be relatively stagnant, which only made up around 1.3 million in 2019. 

However, the changing perception of the people in this country about their needs on automobiles then changed the number of automobile market sales in South Korea. 

How Korean perceive passenger car ownership has shifted significantly in modern society. A car ownership survey that has been conducted shows that only 17 percent of the participants said that car ownership is compulsory. 

Specifically, only 8 percent of younger participants in their twenties stated that car ownership is obligatory. Youths in South Korea get used to the sharing culture including the use of mobile services. 

They take the benefits of car sharing services and it has increased the number of people who use this service several times recently. 

The increased sales of domestic cars as well as the domination of these domestic brands in the market sale ranks are the main reasons why the automotive market in Korea has grown significantly these days. 

Not to mention modern society’s shifting perception of car ownership contributes to high domestic car sales. 

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