Are new car prices falling? The situation has changed. The automobile industry is in a state of emergency.

Are new car prices falling? The situation has changed. The automobile industry is in a state of emergency.
Are new car prices falling? The situation has changed. The automobile industry is in a state of emergency.

IONIQ 6, Torres, QM6 model year change model price reduction
Refrain from raising prices of some models due to sluggish demand for new cars
Next year’s new car lineup will also highlight ‘compact’ and ‘economical efficiency’

Hyundai Motor Company’s exclusive electric vehicle IONIQ 5 production line. Photo = Provided by Hyundai Motor Company.

Next year, it is predicted that ‘car inflation’ (a phenomenon in which car prices rise), which was extreme during the COVID-19 (novel coronavirus infection) period, will slow down and the increase in new car prices will decrease.

According to Cox Automotive, a U.S. automobile data company, on the 21st, the average price of a new electric vehicle as of the third quarter of this year was $50,683, down 22% from the same period last year (about $65,000). The explanation is that companies are cutting prices as inventory is piling up due to slowing demand for electric vehicles.

According to automotive data company Cloud Theory, the average inventory of electric vehicles at U.S. car dealers jumped from 36 days at the beginning of the year to 80 days in September. This means that new electric vehicles are not being sold.

In this situation, Korea has begun to cut prices not only for electric vehicles but also for internal combustion engine vehicles released in the second half of this year.

Among the IONIQ 6 model year changes (2024 IONIQ 6) released by Hyundai Motor Company last September, the Long Range Exclusive Plus trim is 700,000 won cheaper than the previous model. The prices of the remaining trims were frozen, but some of the optional features that cost extra were installed as standard on the model year change, effectively lowering the price.

KG Mobility lowered the price of the Torres model year change (2024 Torres) model by up to 550,000 won. The Torres model year change model improved consumer feedback and increased marketability compared to the previous model, but the price dropped.

Renault Korea launched the mid-size sports utility vehicle (SUV) QM6 model year change (QM6 2024 model) at a price cut of 410,000 to 2 million won depending on the trim. Stellantis Korea also lowered the prices of Jeep Wrangler, Grand Cherokee, and Gladiator by 5.2 million to 9.4 million won last September.

In the case of Polestar Korea, it only increased the price of the recently released Polestar 2 model year change model by 1 million won. In fact, it was a model that was expected to see a large price increase due to the change in full change payment, but the actual increase was only 600,000 won as the subsidy was increased due to improved power efficiency.

In the meantime, domestic and foreign automakers have raised prices by millions of won while releasing models that have improved the marketability of vehicles.

According to the Korea Automotive Mobility Industry Association (KAMA), the average acquisition price of a new passenger car for domestic consumers in 2018 was 31.3 million won, but it increased to 32.91 million won in 2019, 36.22 million won in 2020, and 40.4 million won in 2021, and last year it was 43.69 million won, an increase of 39.5% in four years. I ran.

The average selling price per unit of Hyundai Motors and Kia was 33.06 million won in the third quarter, up 4.5% compared to the same period last year. The average selling price per unit has increased by an average of 15.5% every quarter since the first quarter of 2020 after COVID-19.

An industry official said, “During the COVID-19 period, increases in raw material prices and logistics costs, and a shortage of car semiconductor parts have become factors in the increase in new car prices. Next year, manufacturers will refrain from raising new car prices for some models, and consumers will be encouraged to provide reasonably priced cars.” “An environment that pays more attention can be created,” he said.

Automakers are also preparing their new car lineups next year, focusing on vehicles that emphasize economic efficiency, such as ‘compact cars’ and ‘eco-friendly cars’, excluding vehicles that will undergo partial modifications.

Kia will introduce the compact electric SUV ‘EV3’ in the second quarter of next year. Hyundai Motor Company plans to release ‘Casper Electric,’ an electrified model of the compact car Casper. Renault Korea is preparing a new hybrid mid-size SUV in cooperation with China’s Geely.

Noh Jeong-dong, reporter [email protected]

The article is in Korean

Tags: car prices falling situation changed automobile industry state emergency


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