Why BMWs Are Cheaper Than Hyundais in Korea


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In Korea BMWs are much cheaper than Hyundais.


Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.

Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.

Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.


Why BMWs are cheaper than Hyundais in Korea - Autoblog
 
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For some reason, Hundai is always considered not safe compared to other US/German brands.
May be racist comments. Not sure.
When you sit in a sonata or a Merc taxi, I felt a hell of difference. May be myself. But sometimes, that safe comparison feels true.
 
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Is it something like BMW is cheaper than Tata or M&M in India.

That is the problem when you have too low taxes and you cannot protect your home industries.
 
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Is it something like BMW is cheaper than Tata or M&M in India.

That is the problem when you have too low taxes and you cannot protect your home industries.
But then look at the other side. We get good things at much comparative price. In the end it's the customer who wins. [clap]
 

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