South Korea’s Automobile Sales Results in YTD June 2022

In the first half of 2022, automobile sales in South Korea decreased 11.3% year-on-year to 810,294 units. Although the tax break for individual consumption tax was extended until the end of June, the vehicle supply shortage due to the stagnation of parts supply resulted in a drop in sales. Locally-made vehicles decreased 10.8% year-on-year to 669,251 units, while imported vehicles fell 13.7% year-on- year to 141,043 units.

Looking at the full year of 2022, the individual consumption tax cut will be further extended until the end of the year, but still it is predicted that it will take time to resolve the vehicle supply shortage. For this reason, it is likely that sales will drop below 1.7 million units for the first time in eight years.