Imported-car sales in South Korea are increasingly splitting between ultra-expensive models and bargain-priced vehicles, with fewer buyers in the middle. The same pattern is showing up in the fast-growing electric-vehicle segment, where attention is concentrating on high-performance EVs priced above 100 million won and entry-level models using LFP batteries that maximize government subsidies.
According to the Korea Automobile Importers & Distributors Association (KAIDA) on May 3, sales of imported cars priced at 100 million won or more totaled 17,375 units in the first quarter, up 13.3% from 15,795 a year earlier. By price band, vehicles priced from 100 million won to under 150 million won jumped 22.7% to 9,258 units. Sales of models priced at 150 million won or more slipped 1.2% to 8,088 from 8,184.
Among imported cars priced at 100 million won or more, BMW sold the most with 6,540 units, followed by Mercedes-Benz with 4,687 and Porsche with 2,105.
Within brands classified as “luxury,” Bentley’s first-quarter sales rose 98% to 99 units from 50 a year earlier. Land Rover sales increased 10.1% to 1,141 from 1,036, and Rolls-Royce rose 13.2% to 43 from 38.
Value-focused brands also performed strongly. China’s BYD sold 2,252 units in the first quarter, accounting for 84% of imported-car sales priced at 40 million won or less. With BYD’s surge, total sales in that low-price segment reached 2,038 units, up 581.6% from 299 a year earlier.
The split is also evident in EVs. First-quarter sales of imported EVs priced at 100 million won or more rose 72.3% to 2,872 units. At the same time, sales of mass-market EVs priced at 50 million won or less totaled 17,938 units, about 60% of the overall imported EV market of 31,498 units, helping drive growth.
By contrast, sales in the midrange — 50 million to 70 million won, often seen as the average imported-car price band — rose 13.9% to 20,575 units. That increase lagged the overall imported-car market growth rate of 35.5%.
The disappearance of “average” spending is being linked to widening gaps in household finances. The article cited a view that sharp gains in some assets such as real estate and stocks have boosted purchasing power for high-income consumers, while high inflation and high interest rates have squeezed typical households, pushing them to focus on cost-effectiveness. It also said EV makers including Tesla have been reducing midpriced offerings and strengthening a two-track strategy centered on higher-margin luxury models and lower-priced vehicles, deepening the divide.
An industry official said the market is being reshuffled toward the extremes as lower-priced EVs expand the value segment and buyers seeking clear differentiation move into the ultra-premium tier. “Brands with an ambiguous position will find it increasingly difficult to survive,” the official said, adding that polarization by price is expected to become more pronounced and imported-car brands should refine strategies to meet layered consumer demand.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.