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Automobile industry

Fuel Price Surge Drives Sales of Fuel-Efficient Vehicles in South Korea

Strategic Insights

— 1 min read

As fuel prices in South Korea hit record highs, consumers are turning to more affordable options such as small cars and hybrid-powered vehicles. According to a government report, domestic sales of these vehicles reached 16,523 units in February, the highest monthly figure in the past decade. This surge in sales reflects a 45.1% increase in city car sales and a 12.1% rise in hybrid vehicle sales compared to the previous year.

Key Takeaways:

  • Sales of small cars with an engine capacity of around 1,000cc reached 15,882 units in February, a 45.1% increase on-year and the highest market share in 13 years, accounting for 18.1% of all South Korean-made cars sold.
  • Domestic sales of hybrid-powered vehicles increased 12.1% compared to the previous year, with 641 cars being sold nationwide.
  • The sales of fuel-efficient vehicles reflect the much higher prices for gasoline, diesel, and liquefied petroleum gas, which surpassed 1,900 won (US$1.70) per liter mark in many gas stations, with some recently selling gasoline at over 2,300 won per liter.
  • Sales of locally made cars increased 1.1% to 107,695 vehicles, while imports gained 5.2% on-year to 6,770 units, contributing to a total of 114,465 domestic car sales in February.
  • Kia Motors Corp's Morning and Hyundai Motor Co's Avante 1.6 LPI were among the top-selling models in February.

Statistics:

  • 16,523 units of small cars and hybrid-powered vehicles were sold in February, the highest monthly figure in the past decade.
  • Sales of city cars with an engine capacity of around 1,000cc shot up 45.1% on-year to 15,882 units last month.
  • Hybrids sales increased 12.1% compared to the previous year, with 641 cars being sold nationwide.
  • Gasoline prices surpassed the 1,900 won (US$1.70) per liter mark in many gas stations, with some recently selling gasoline at over 2,300 won per liter.
  • South Korea's domestic car sales reached 114,465 units in February, a 1.1% increase in locally made cars and a 5.2% on-year gain in imports.

Sources:

  • Ministry of Knowledge Economy (report)
  • Yonhap (news outlet)

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