37% of Gangnam-gu & Bundang-gu bought Imported

  Imported cars are the car of person with high income. Their current ownership rate is high, as well as recent purchase rate and purchase intention in the future also. By region, Gangnam-gu · Seocho-gu · Bundang-gu were particularly high, while it was high among newly-wed couple with no children. Gangnam-gu and Bundang-gu had similar recent purchase rate with purchase intention rate, indicating a possibility of already reaching the ceiling for sales increase. Seocho-gu had purchase intention rate reaching 44%.

  In 2014 Automobile Syndicated Study conducted by automotive specialist research firm, Marketing Insight, ownership rate, purchase rate of past 1 year and the purchase intention rate of prospective buyers within two years of imported cars were analyzed to list especially high percentage groups in rate [Table 1]. Firstly, imported car ownership rate was 6% of the total passenger cars. The highest current imported cars ownership was found in the groups of ‘Previous imported car owners’ (54 %), ’10 million won or more Personal monthly income’ (27%), ‘Gangnam-gu residents’ (23%), ‘Seocho-gu residents’ (22%) and ‘Bundang-gu residents’ (17%), in the order. For Gangnam · Seocho, the rate of imported vehicle appeared to exceed 20% of currently owned passenger cars (23% and 22%, respectively).

  Imported car purchase rate among new car purchasers within the last one year also showed the similar tendency with current ownership rate. The groups with the highest imported car purchase rate was ‘Previous imported car owners’ (68%), ’10 million won or more Personal monthly income’ (41%), ‘Gangnam-gu & Bundang-gu residents’ (37% each) and ‘Seocho-gu of residents’ (32%), in the order. When considering current ownership rate, Bundang-gu had explosively increased imported car sales, became the second area that exceeds the domestic top brand following after Gangnam-gu (Refer to: 1/5 in Seoul and 1/3 in Gangnam bought Imported Cars).

  Imported car purchase intention rate of new car purchase intenders within two years also had a great relationship with the imported cars ownership experience. 85% of the ‘Current imported car owners’ was considering imported cars as the next car, followed by ’10 million won or more Personal monthly income’ (49%), ‘Seocho-gu residents’ (44%), ‘Gangnam-gu’ (39%) and ‘Bundang-gu’ (38%), in order. Beside of that, the groups with high recent purchase rate and purchase intention include couples with no children (21% and 32%, respectively) and Professional/Managerial workers (23% and 28%, respectively).

  From the findings in the study results, it is possible to get some implications. • Imported car market has a possibility to expand larger. That’s because the purchase intention rate within the next two years (22%) is greater than the purchase rate of the past 1 year (14%), and the large re-purchase rate and purchase intention of imported car experienced people. • Newly-wed generation with no children emerges as a big market. Their purchase rate at 21% and purchase intention rate at 32% displays a big difference with the other generations. • Imported car is likely to go beyond the car of person with high income. 30% of 6 million won or more monthly income households have a imported car purchase intention, and even in less than 5 million won income, 15% are considering the imported cars. When the small cars get popular and increase, they can also become a powerful market. • Regions such as Gangnam-gu and Bundang-gu are likely to be the first case that has been stagnant in increase of imported car sales. Because the purchase intention rate (39% and 38%, respectively) has almost no gap with the purchase rate of the past 1 year (37% each), one can glimpse the possibility of growth engine reaching the limit.

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