[THE INVESTOR] Automakers in Korea, both domestic and foreign, have beefed up their marketing with discounts and promotional events after the temporary excise tax break expired end-June, industry officials said July 5.

The government temporarily slashed excise taxes by 30 percent on cars to 3.5 percent from August to June to bolster the sluggish domestic demand, which pushed up auto sales by 10.9 percent in the first half from a year earlier.

To deal with a potential sales drop, several automakers decided to offer discounts this month to maintain the sales momentum as the previous month.

BMW Group Korea said it has decided to cut the retail price of BMWs and Mini Coopers to allow consumers to buy the cars at the same price when combined with a 5-percent consumption tax.

“It means that consumers can buy cars at the same price as June although the excise tax break ended last month,” BMW Group Korea said.

Fiat Chrysler Automobiles Korea is offering the subcompact crossover SUV Zeep Renegade and crossover SUV Fiat 500X models at discounted prices this month.

French car brand Peugeot also said it will cut the retail price for the subcompact SUV 2008 Feline, steady seller 3008 1.6 Allure and flagship sedan 508 2.0 Feline this month.

Nissan Korea, which broke a sales record in June, will offer discounts on the flagship sedan Altima to make up for the end of the tax deduction this month.

Meanwhile, Korean branches of other German brands, Mercedes-Benz and Audi, have announced that they will sell cars that have cleared customs within June at discounted prices.

Local carmakers have also decided to join the marketing competition to attract customers.

Hyundai Motor said it will offer a 60-month, interest-free installment for five major brands this month, and its sister brand Kia Motors will offer either a 1.5 percent auto loan on three models or 500,000 won (US$435) cash payback for purchases this month.


(theinvestor@heraldcorp.com)