Lower tariffs are making German imports cheaper than local Korean-made vehicles.
A BMW 528i for example, is around $64,000 in South Korea while the flagship Kia K9 is around $76,400. Even consumers in South Korea are abandoning their dedication to their domestic brands realizing that German vehicles offer a better luxury bargain.
BMW isn’t the only German automaker to be benefiting. Mercedes-Benz and Audi have also seen sales increase at the expense of Kia and Hyundai over recent years now that duties on European imports have fallen to 3.2 percent from eight percent since a trade pact was put into effect in 2011.
All of Germany’s big three automakers have seen sales in South Korea rise 25 percent in the first growth – that’s even faster growth than what they’re seeing in China. Hyundai on the other hand, saw its luxury high-end model sales drop 4.7 percent in the same period.
Overall, foreign luxury automakers in South Korea have seen sales grow to 41 percent from 28 percent in the past two years.
GALLERY: 2014 Hyundai Equus Live Shots
GALLERY: 2014 Hyundai Equus
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