GM Korea Sales Could See A Boost Thanks To Government Tax Incentive4
After a rollercoaster first half of 2018, GM Korea is still working to find its footing. Yet, the Chevrolet Korea division only managed to move 9,000 new vehicles in July of 2018, reflecting a 17 percent sales decrease year-over-year.
A new government incentive may help turn GM Korea’s fortunes around, however. The Korea Bizwire reported the special consumption tax has been lowered from 5 percent to 3.5 percent until the end of 2018. The tax incentive will save car buyers hundreds of dollars on new car purchases. For example, a buyer purchasing an $18,000 USD vehicle will pay almost $400 less in taxes.
The measure includes all vehicles aside from compact cars, however. New-car purchases make up 11.7 percent of the South Korean consumption level, a significant figure for the nation.
GM Korea sales are down a whopping 38 percent this year compared to 2017 sales figures, though there is one bright spot. The Chevrolet Bolt EV saw sales increase 1485.45 percent to 872 units this past July. Its performance made it the third-best-selling car in Chevrolet’s Korean lineup.
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The local competition from Hyundai and Kia is one-sided and huge! I wish GM had the same one-sided lead against all the foreign brands here, but most of those U.S. buyers don’t care about national loyalty and only think with their pockets, not their hearts!
Exactly why America was screwed over for years.
Great to see we finally have a President taking charge and protecting American workers on trade.
P.S. Nice to see South Korea cave to President Trump tough stance on trade. Tomorrow is another big news day. Stay tuned.
what did the koreans give trump exactly?
gm/ford/chrysler once had that huge lead and loyalty. then they threw it all away with arrogance and complacency.