Imported cars drop by more than 10 million won, and the ‘car inflation’ (
car + inflation, a phenomenon in which car prices rise), which
was extreme during the corona period, appears to be slowing down. As imported cars began offering large-scale discounts, the prices of some domestic car models were also adjusted downward. According to the automobile industry on the 11th, Hyundai Motor Company’s메이저놀이터 IONIQ 6, KG Mobility (formerly Ssangyong Motor Company) Torres, and Renault Korea Motor Company’s QM6 have reduced their prices one after another this month. Instead of applying a temporary discount to the regular price, the price tag was changed to be cheaper.
IONIQ 6 launched the model year change model ‘2024 IONIQ 6’ and lowered the price of the Long Range Exclusive Plus trim by 700,000 won from 58.45 million won to 57.75 million won. The Exclusive trim features an electronic rearview mirror ( ECM ) and a rain sensor as standard, and the price has been frozen. The Prestige trim also standardizes Bose premium sound but freezes the price. This is in contrast to the past, where paid options were installed as standard due to model year changes, raising the price by millions of won.
The price of KG Mobility’s representative vehicle, the Torres, also dropped after the model year change. Options such as rain detection wipers and smart high beams were included as standard in the Torres T5 trim, and the price was reduced by 550,000 won. For Renault Korea QM6 , the price reduction is larger, ranging from 410,000 to 2 million won. The RE trim price of the LPG model QM6 2.0 LPe was lowered from 33.65 million won to 31.7 million won. There are also increasing cases of imported car brands adjusting their price tags instead of discounts. This month, Stellantis Korea’s Jeep prices for Wrangler, Grand Cherokee, and Gladiator ranged from 5.2 million to 9.4 million.
It went down by 10,000 won. The Wrangler Rubicon 2-door was lowered by 7.2 million won from 77.1 million won to 69.9 million won, and the Grand Cherokee Limited trim was lowered by 8.6 million won from 85.5 million won to 76.9 million won.
Automobile companies often run discount promotions when sales are sluggish or inventory is piling up, but it is unusual to lower the price tag itself. The supply shortage of automotive semiconductors has been alleviated, the number of backorders has decreased, and demand has decreased due to interest rate increases.
The carflation slowdown is also a global phenomenon. According to a survey by Kelly Blue Book in the U.S., the average transaction price for a new car in the U.S. in July of this year was $48,334 (about 64.5 million won), a decrease from $48,671 (about 65 million won) the previous month. This is because there were many discounts on expensive cars and electric vehicles.
Imported cars are aggressively discounted domestically. According to Getcha, a car purchase information platform, the Mercedes-Benz E-Class E250 Exclusive is being sold at a discount of 9.93 million won (13.4%) from 73.9 million won to 63.96 million won. The BMW 4 Series 420i Coupe M Sports is being discounted by 6.5 million won (9.7%) from 67 million won to 60.5 million won. The Audi A6 45 TFSI Quattro Premium is being sold at a discount of 14.63 million won (18.0%) from 81.32 million won to 66.68 million won.