SEOUL, March 7 (Yonhap) — Hyundai Generator Co. discussed their used vehicle company ideas to develop customers’ right of preference on Wednesday. However, the government halted the business release due to arguments from existing players.
Previously a couple of years, Hyundai has received times speaks with government officials, different carmakers, and existing used vehicle retailers. Still, they have perhaps not achieved any tangible result or a breakthrough.
In December, the Korea Car Producers Association (KAMA), which presents the fascination of complete car carmakers, said five regional carmakers could enroll for B2C used vehicle company licenses.
Hyundai and their more minor affiliate Kia Corp. registered for the permits. Still, three others — GM Korea Co., Renault Samsung Engines Corp., and SsangYong Generator Co. — remain under concern, a KAMA spokeswoman said by phone.
Against a powerful argument from the Korea Usedcar Retailers Association, the Ministry of SMEs and Startups proposed that the automotive conglomerate postpone their release of the qualified used vehicle revenue business.
The association argued Hyundai’s entry might have a poor effect on the existing B2C used vehicle dealers.
Under their company ideas, Hyundai can promote used cars that pass a rigid quality testing process following buying its company cars that have been on your way for less than five decades and visited less than 100,000 kilometers significantly, the company said in a statement.
Hyundai said it will restrict its industry reveal to 5.1 percent in Korea by 2024 from 2.5 percent in 2022 and 3.6 percent in 2023 to coexist with competitors in the used vehicle industry.
The Sonata sedan and the Palisade SUV machine also have ideas to add the “trade-in” program. The company purchases used Hyundai company cars from customers and present discounts for new Hyundai models.
“Supply of (Hyundai’s) qualified quality used cars (which underwent the rigid testing process), and purchases of used (Hyundai) cars from customers can help enhance the models’ residual value and increase customers’ trust in the used vehicle industry” the statement said.
The organization’s ideas to set up an on the web portal to provide comprehensive info on the cars up for sale to break the info monopoly long presented by dealers.
