Restrictions on the number of units sold – target of purchase, etc.
Automobile industry “Slightly disappointing result”
The time when large automakers, including Hyundai Motor Group, can sell used cars has been delayed by one year to May next year.
The Ministry of SMEs and Startups announced on the 28th that the SME Business Adjustment Council held a meeting and decided on a business adjustment recommendation. As a result, Hyundai and Kia’s used car sales will be possible from May 1, next year. However, from January to April next year, trial sales will be allowed within 5,000 units each.
This recommendation placed restrictions on the number of units sold and the target of purchase, as well as the timing of the start of sales. The number of units sold (market share) is limited within a certain range for two years. Hyundai Motor Company △2.9% (May 2023 – April 2024) △4.1% (May 2024 – April 2025), Kia △2.1% (May 2023 – April 2024) △2.9% (May 2024 to April 2025).
Hyundai Motor Company and Kia Motors can purchase vehicles only when there is a request for a used vehicle purchase from a customer who wants to purchase a new vehicle. There was also a condition that the used cars that were not for sale were requested to be auctioned out of the purchased used cars. This business adjustment recommendation will be applied for three years from next month.
On the 17th of last month, the used car sales business was not designated as a suitable business for livelihood by the deliberation committee of the industry suitable for livelihood, so large companies can officially enter the used car market. However, the finished car industry and the used car industry have continued to show differences of opinion over the preparation of measures to alleviate the impact of small and medium-sized businesses. The Ministry of SMEs and Startups reached a conclusion through a deliberation on the same day as they could not reach an agreement even in the voluntary mediation between the parties (two times) and the autonomous project mediation council (four times) in which private experts participate.
The automobile industry expressed disappointment even though it would follow the recommendations. Hyundai Motor Company and Kia Motors issued a statement on the same day and said, “It is a rather disappointing result considering consumers desperately wanting changes in the used car market.” He added, “In particular, the recommendation of a one-year grace period for business start-up was not fully considered by consumers who expected high-quality used cars and a transparent transaction environment.”
Correspondent Kim So-min somin@donga.com
Reporter Lee Kun-hyuk gun@donga.com
