Comparing to the parts and components of domestic cars, the price differential is often as high as seven times.(image: Kobizmedia/Korea Bizwire)
SEOUL, Dec. 9 (Korea Bizwire) — A study said the prices of parts and components for import cars sold in Korea are up to 2.5 times more expensive than those sold overseas. Comparing to the parts and components of domestic cars, the price differential is often as high as seven times.
Consumers Korea, in cooperation with the Fair Trade Commission, conducted a survey on five popular import car brands, including BMW, Mercedes-Benz, Audi, Lexus, and Chrysler and compared prices of six most frequently replaced parts. Of the 30 import parts, 23 turned out to be more expensive in Korea than elsewhere.
For example, the domestic price for the front fender of the Lexus (300h model) was 691,000 won (value-added tax not included), about 2.5 times higher than that in Germany (276,000 won) and 1.8 times higher than that available in the United States (394,000 won). The domestically available price of the headlamp was also 2.5 times and 2.1 times higher than Germany and the United States, respectively.
For the Mercedes-Benz (E300 model), the prices for the front and rear bumpers were 1.4 times more expensive in Korea than other markets. As for the headlamp, it was 1.3 times and 1.8 times higher than in Germany and the U.S. The Chrysler (300C model) charged 1.3 times and 1.9 times higher prices for its door panels in Korea than in Germany and the U.S. Chrysler’s headlamps are 1.4 times and 1.8 times more expensive in Korea than anywhere else.
In contrast, Audi (A6) and BMW (520d) had little difference in parts and components prices between Korea and elsewhere. The domestic prices of Audi’s headlamps, and BMW’s front bumper, hood, and front fender are only 90 percent of the average overseas prices.
In a comparison of nine 2.0-liter passenger cars–five import brands and four domestic ones (Hyundai, Kia, GM-Daewoo, and Renault Samsung), parts prices were 4.6-7.0 times higher for import cars than for domestic ones. Their car prices were 2.9 times more expensive than home-made cars on average.
For example, the average parts price differential between the BMW (520d) and domestic models was 7.0 times for headlamp, 6.7 times for rear bumper, 6.6 times for front bumper, 5.9 times for front fender, 5.0 times for hood, and 4.6 times for front door panel.
Yoon Myung, senior manager with Consumers Korea, said, “Parts of import cars are brought in by exclusive importers and sold through designated suppliers. Due to this closed nature, there is no price competition in the import auto parts market.”
By Sean Chung (schung10@koreabizwire.com)
