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Automobile industry

South Korean Car Buyers Rush to Purchase Euro 5 Models Amidst Price Hike Due to Emission Regulations

Strategic Insights

— 1 min read

The Environment Ministry's implementation of Euro 6 emission standards from September has led to a surge in demand for Euro 5 models, which are cheaper but less environmentally friendly. To comply with the new standards, carmakers are forced to install extra purification equipment, resulting in a price hike of 3 million won for cars. Local carmakers such as Hyundai and Kia have already released Euro 6 models, but Hyundai will continue to sell Euro 5 models until new models are launched in the latter half of the year. Foreign carmakers have a three-month grace period until November to deliver Euro 5 models.

Key Takeaways:

  • Over 2,000 customers are on the waiting list for the Kia Mohave SUV, which will be temporarily stopped from production due to the introduction of Euro 6 standards.
  • Hyundai will stop selling Euro 5 models by the end of the year, with the new Sonata diesel launching in July complying with Euro 6 standards.
  • Kia Motors will adopt Euro 6 standards for most of its vehicles, including the Pride, Sorento, and Soul, while launching the new Sportage with a Euro 6 engine in August.
  • GM Korea will adopt Euro 6 standards with the Trax compact SUV this year, followed by other models such as the Cruz, Malibu, and Captiva.
  • Foreign carmakers can deliver Euro 5 models until November due to import procedures.
  • Volkswagen's June sales rose more than 10% compared to May, with the company citing demand for Euro 5 models before the price hike.

Statistics:

  • The Environment Ministry's Euro 6 emission standards reduce nitrogen oxide emissions to 80 milligrams per kilometer, down from 180.
  • Particle matter will be reduced to 4.5 milligrams per kilometer from 5 mg/km.
  • The price hike for cars to comply with Euro 6 standards is 3 million won.
  • Over 2,000 customers are on the waiting list for the Kia Mohave SUV.
  • Hyundai's new Sonata diesel will launch in July complying with Euro 6 standards.
  • Kia Motors will launch the new Sportage with a Euro 6 engine in August.
  • GM Korea will adopt Euro 6 standards with the Trax compact SUV this year.

Sources:

  • Park Jin-hai

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