Money Today Reporter Lee Tae-seong | 2023.10.01 07:22
(Siheung = News 1) Reporter Ahn Eun-na = 2023.5.17/News 1 Copyright (C) News 1. All rights reserved. Unauthorized reproduction and redistribution prohibited. Hyundai Motor Company and Kia Motors will begin selling certified used cars starting this month. Attention is being paid to whether opacity, which has been considered a chronic problem in the used car market, will be resolved with the entry of large companies. According to the automobile industry on the 1st, Hyundai Motor Company plans to hold an event related to entering the used car business at the high-tech center dedicated to certified used cars in Yangsan, Gyeongnam, sometime next month. This is the site of the existing Hyundai Motor Company mass production center, and the existing building was demolished and renovation work was carried out to establish a used car sales center. In addition to mass production, Hyundai Motor Company, along with Kia, plans to sell used cars at Auto Hub, a used car complex in Yongin.
Hyundai Motor Company selects only its vehicles that have passed 200 quality inspections and sell them as ‘certified used cars’ if they are 5 years old and have less than 100,000 km of mileage. In addition, Hyundai Motor Company and Kia Motors are limiting sales volume to protect existing used car businesses. Hyundai Motor Company has decided not to exceed 2.9% of the used car market share until April 30, 2024, and 4.1% from May 1, 2024 to April 30, 2025. Kia is limited to 2.1% until April 30, 2024, and 2.9% from May 1, 2024 to April 30, 2025. In addition, customers who want to purchase a new car can only purchase a used car if they request to purchase a used car.
Looking at the overall market size, the sales volume of certified used cars by Hyundai Motors and Kia is not expected to be large. The annual domestic used car transaction volume is 30 trillion won, and as of the first half of this year, the transaction volume is more than 30% higher than that of new cars. According to Kaizuyu Data Research Institute, in the first half of this year, new car (passenger car) registrations were 783,653 units and used cars were 1,012,418 units.
However, with the entry of large corporations into the market, problems such as information asymmetry, which has been a chronic problem in the used car market, are expected to be resolved. Consumers have been demanding the disclosure of accurate information about used cars and the entry of large corporations, saying they are being harmed by false and deceptive listings.
Hyundai and Kia plan to focus their used car sales online. However, since consumers can show the car if they wish, this part is expected to be operated on a reservation system.
Meanwhile, KG Mobility, Renault Korea, and GM Korea are also seeking to enter the used car market. Here, Lotte Rental launched ‘My Car Save’, an online used car trading platform. This is a business that rents and sells used cars returned after long-term rental for 3 to 5 years through direct online contract. To this end, Lotte Rental has decided to secure 50,000 used cars for online trading by 2025.
If not only the five domestic automakers but also the rental industry enters the used car market, various related industries such as maintenance, parts, distribution and management, and testing and certification are expected to become active.
[저작권자 @머니투데이, 무단전재 및 재배포 금지]
2023-09-30 22:22:00
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