Hyundai Motor and Kia Motors’ used car sales have been postponed for one year to May next year.
The Ministry of SMEs and Startups held a business adjustment council for SMEs on the 28th and approved the recommendation for business adjustment. As a result, sales of used cars by Hyundai and Kia will be available from May 1 next year. However, trial sales will be allowed within 5,000 units from January to April next year.
The recommendation also limited the number of sales and targets to be purchased, along with the start of sales. The number of sales (market share) is limited to a certain range for two years. Hyundai Motor is △2.9% (May 2023 to April 2024) △4.1%, Kia Motors is △2.1% (May 2023 to April 2024) △2.9% (May 2024 to April 25).
Hyundai Motor Co. and Kia Motors Corp. can only buy used cars when customers who want to buy new cars are asked to buy them. Among used cars purchased, used cars that are not sold should be auctioned. This business adjustment recommendation will be applied for three years starting next month.
Last month, the committee did not designate the used car sales business as a suitable business for livelihood, making it officially possible for large companies to enter the used car market. However, the finished car industry and the used car industry have continued to differ over how to come up with measures to alleviate the impact of small and medium-sized businesses. The Ministry of SMEs and Startups reached a conclusion through the deliberation meeting on the same day after failing to reach an agreement with the self-adjustment council (two times) between the parties and the autonomous business coordination council (four times) involving private experts.
The finished car industry said it would follow the recommendations, but expressed regret. Hyundai Motor and Kia Motors issued a statement on the same day, saying, “Considering consumers who desperately want to change the used car market, it is a rather disappointing result.” “In particular, the recommendation for a one-year grace period for the start of the business was not sufficiently considered for consumers who expected a high-quality used car and a transparent trading environment,” he added.
Hyundai Motor and Kia Motors, 현대 중고차 가격which have already announced plans for the used car business, decided to launch a pilot project in January next year and start the certified used car business in May.