Photo: Bloomberg.com
As of 2013, the South Korea manufacturers (Hyundai and Kia) will face some troubling markets as the tax cuts will bring cheaper European cars to the small Asian country, making the competition fiercer than ever.
Recently, duties on European imports have fallen to 3.2 percent from 8 percent since a trade pact was implemented in 2011, and next year they will be eliminated for most cars. For American passenger cars things are looking even better, as all taxes will be cut down starting with 2016.
BMW, Audi and Mercedes-Benz are already taking advantage of this situation and their market share grew last year from 28 percent up to 41. Whilst these manufacturers are enjoying the current climate, Korean ones are definitely unsatisfied, as their home market is the most profitable one.
In this regard, BMW is already investing heavily in the Korean state, developing a track in Incheon, where customers can test drive their cars at high speeds. This will be the first such track in Asia done by the German manufacturer and it will cost 70 billion won ($62 million).
Via: Bloomberg
BMW, Audi and Mercedes-Benz are already taking advantage of this situation and their market share grew last year from 28 percent up to 41. Whilst these manufacturers are enjoying the current climate, Korean ones are definitely unsatisfied, as their home market is the most profitable one.
In this regard, BMW is already investing heavily in the Korean state, developing a track in Incheon, where customers can test drive their cars at high speeds. This will be the first such track in Asia done by the German manufacturer and it will cost 70 billion won ($62 million).
Via: Bloomberg
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