The Korea Herald


Car imports cut in half in July on end of tax benefits, VW woes

By 이지윤

Published : Aug. 28, 2016 - 12:22

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[THE INVESTOR] Imports of foreign cars were cut in half in July from the previous month in the wake of the emissions-rigging scandal of Volkswagen and Audi cars and the end of tax beneifts on new car purchases.

According to data from the Korea Automobile Manufacturers Association, a total of 17,897 vehicles were imported into the country in July, down 51 percent from June.

The largest 6,432 vehicles were imported from Germany but the figure plunged 58 percent from a month earlier. Imports from the US also declined 52.2 percent to 2,357 vehicles in the month.

Industry watchers said such a sharp decline was partly attributed to the termination of a temporary tax cut on new car purchases.

The June 30 termination of the tax incentive has also led to a cut in sales of locally produced cars.

In July, domestic sales of locally produced vehicles plunged 10.6 percent on-year to 121,144, automakers here said earlier. The figure is a turnaround from the 10.9 percent on-year spike in the January-June period.