Sale of hybrid cars in South Korea increases

Despite the car market contraction in South Korea last October, hybrid car sales in November showed a 28.9% growth from 1,345 units sold in October to 1,734 sold in November. But the combined domestic sale of Korea’s five car makers was down by 4.7 % to 115,273 units. Hyundai’s hybrid cars were in the lead in terms of sales volume, posting a 73.6% increase from October, with 1,031 units sold in November. However, sale of Kia’s K5 Hybrid decreased by 9.2%, with 543 units sold in November. Industry analysts attributed the growth in the sale of hybrid cars to the increasing awareness of the public regarding the higher fuel efficiency of hybrid cars, a strengthened marketing strategy, and a government incentive scheme that entitles hybrid car buyers to 4.2 million won (US$3,586) in tax breaks. The tax exemptions include 2 million won (US$1,763.12) in consumption tax, 0.6 million won (US$528.93) in education tax, 1.4 million won (US$1,234.19) in acquisition tax and 0.2 million won (US$176.31) in other taxes. (December 4, 2011)