Good news for European car makers. South Korea will make its home market a haven for imported vehicles.
In 2011, the Asian country has implemented a trade pact agreement that has since helped European car makers offer ever more cheap cars.
All these vehicles have seen a dramatic drop in duties, from 8 percent to 3.2 percent. And it seems that next year South Korea will eliminate them for the vast majority of vehicles. Come 2016, taxes will also be cut down for all American passenger cars.
But how all these taxes reductions translate into today’s market? Well, the new climate allows BMW to offer prices that can compete with local manufacturers like Hyundai and Kia. They are basically making a killing in another’s home market.
Things are going so well, that the German car maker even looks to invest into a race track to be built in Incheon, costing an estimated 70 billion WON (62 million USD). The track is built with the purpose of test driving your car at high speeds, pulling in even more buyers.