[THE INVESTOR] The sales of imported automobiles for corporate use has plunged this year, hamstringed by tougher regulations of corporate vehicles. Industry data showed on July 1 that the number of imported cars registered to corporations during the first five months of the year dropped 15.6 percent compared to the same period last year.

The fall has been attributed to the regulation changes aimed at preventing corporate vehicles being used for personal purposes. From January to May, 33,071 imported vehicles were registered for corporate use, accounting for 35.4 percent all imported cars registered during the period. 

In comparison, 39,171 imported cars were registered for corporate use during the same period last year. 



In addition, local insurance companies changed regulations to allow domestic vehicles to be provided as temporary replacements for imported vehicles involved in accidents, which is thought to have contributed to the sudden drop. Imported cars registered to corporate bodies had been on the rise until this year, reaching 94,311 units in 2015, more than doubling from 45,081 units in 2010.

By carmaker, high-end brands took the biggest hit. Super luxury marques took the brunt of the decline with Bentley’s sales to corporations plunging 41.5 percent.

By Choi He-suk (cheesuk@heraldcorp.com)