Honda is attempting to regain its number one position in the Korean import market by importing cars made in Europe, helping to take advantage of the free-trade agreement between Korea and the EU. Honda produces the CR-V and Civic in the U.K. and bringing them into Korea will create a price advantage for Korean customers because of the lowered tariff on imported cars. Honda's market share has steadily dropped from a booming share in 2008 and continues to fall in Korea with only a 16.7% market share, down almost 27%.
In 2008, Honda sold more than 10 000 units and was the top importer, selling almost 12 400 vehicles. "The reason why sales have struggled recently is not due to our own quality or performance but due to external factors such as the high yen and the earthquake in Japan," Chung Woo-young, Honda Korea CEO states. New models will also be introduced in Korea later this year to help bring in customers. The CR-Z, the new redesigned Civic and Civic Hybrid are just some of the models that Honda Korea's CEO is hoping to woo in buyers.
Chung hopes to double the sales in the second period of this year, aiming to sell about 3 300 vehicles and within a few years, be back to its 2008 levels by utilizing aggressive strategies.