[AutoDaily] According to Korus FTA(U.S.-Korea Free Trade Agreement), the individual consumption tax about over 2000 cubic centimeter displacement is down from 7% to 6%, so domestic and imported automakers all together decrease its price.The domestic car companies like Hyundai-Kia motor, GM Korea, and Renault-Samsung applied over 2000cc displacement car making down reduction of individual consumption tax price since 1 January. European automakers like Mercedes-Benz and BMW also cut down over 2000cc displacement car’s selling price average 500 thousand won, maximum 2 million won.
The Jaguar-Land Rover, Ford, and Chrysler decreased its price 0.5%~1% on average.
This markdown is that reflection of individual consumption tax price. The companies which increased car’s price are having trouble with customers about rise in prices, because under 2000cc displacement cars were not applied.
The Volkswagen which has many kinds of under 2000cc car made the price of Golf 1.6TDI and 2.0TDI raise 500 thousand won, and 600 thousand won for Jetta 1.6 model.
The problem is why they increased over 2000cc car model from 300 thousand to 700 thousand won such as beetle 2.0TDI, Passat 2.0TDI, Tiguan 2.0 model, Touareg 3.0TDI, 4.2TDI, and Phaeton 3.0TDI.
The Volkswagen explained “we adjusted prices to keep pace with inflation about the small cars.” and “In terms of over 2000CC cars, the margin for Volkswagen dealer is too small, we made it actualization. ”
People in imported car business pointed that it is not the dealer’s margin is small but Volkswagen set the high sales target, it caused cutthroat competition between dealers.
Because Volkswagen wanted to expand their sales volume on Korean market, they pushed dealer. As a result the price was increased, they tried to preserve dealer’s loss.
Actually, Volkswagen Korea sold 25,694 units, it increased 40% compared to last year. However, the most of dealers suffered a loss.
Audi Korea, same group with Volkswagen, brought up the price of over 2000CC car such as A4 2.0TDI, A5, A6 2.0, Q3, and Q5 500 ~ 700 thousand won, it drew strong opposition from domestic consumers.
By Lee Sangwon.
(Translate by Lee Yeseul)