Photo: Hyundai
The semiconductor crisis, as well as the long lead times faced by customers who want to buy a new car, has made car manufacturers adapt. Hyundai and Kia, for instance, have decided to enter the second-hand car market, even if, for now, the move is aimed at the Korean market only. Although there is no official information, it is not excluded that the initiative will be introduced in other markets in the future.
However, Korean customers who want a used Hyundai or Kia will have to wait until they can buy directly from the companies that made them.
According to Korea Times, the government has decided that Hyundai Motor and Kia will postpone their plans to enter the used car market for another year. That, to minimize the impact on local firms already in the business.
In March, the Ministry for SMEs and Startups decided not to designate used car sales as a "livelihood business" that should be reserved only for small businesses and startups. This designation paves the way for big companies like Hyundai Motor Group to enter this market.
Even when they will be allowed to sell used cars, the amount they'll be allowed to sell is capped. Hyundai would cover 2.9 percent of all used car transactions in the country between May 2023 and April 2024 and 4.1 percent the following year, and Kia 2.1 percent and 2.9 percent in the same period. On the other hand, Hyundai and Kia have to buy used cars from the customers who intend to buy new vehicles with their brand badges.
According to Hyundai, a "trade-in" program will be introduced, in which the company buys used Hyundai cars from customers, and offers discounts when they buy new Hyundai models.
Kia said it will allow customers to test drive a used car they want to buy for a month, and then decide whether or not to get it under a "buy and subscribe program."
The used car market in Korea is worth about 2.6 million vehicles a year.
According to Korea Times, the government has decided that Hyundai Motor and Kia will postpone their plans to enter the used car market for another year. That, to minimize the impact on local firms already in the business.
In March, the Ministry for SMEs and Startups decided not to designate used car sales as a "livelihood business" that should be reserved only for small businesses and startups. This designation paves the way for big companies like Hyundai Motor Group to enter this market.
Even when they will be allowed to sell used cars, the amount they'll be allowed to sell is capped. Hyundai would cover 2.9 percent of all used car transactions in the country between May 2023 and April 2024 and 4.1 percent the following year, and Kia 2.1 percent and 2.9 percent in the same period. On the other hand, Hyundai and Kia have to buy used cars from the customers who intend to buy new vehicles with their brand badges.
According to Hyundai, a "trade-in" program will be introduced, in which the company buys used Hyundai cars from customers, and offers discounts when they buy new Hyundai models.
Kia said it will allow customers to test drive a used car they want to buy for a month, and then decide whether or not to get it under a "buy and subscribe program."
The used car market in Korea is worth about 2.6 million vehicles a year.
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