Automakers are rolling out large-scale discounts for the August summer season. They aim to absorb as much of the price hikes as possible from reduced incentives, such as the special consumption tax rising from 3.5% to 5% on the 1st, to counter a drop in demand.
On the 3rd, according to the auto industry, Hyundai Motor(005380) and Genesis extended their summer discount event, "Summer Festa," by one month through this month and expanded the eligible models.
With the expanded lineup, the flagship sedan The New Grandeur, launched in May, was added with a base discount of 1 million won. Depending on conditions such as production timing and whether it is a display car, buyers can get up to 2.8 million won off.
The New Grandeur hybrid model gets up to 800,000 won off. The previous-generation Grandeur and Grandeur hybrid offer maximum discounts of 5.8 million won and 4.3 million won, respectively.
The compact sedan Avante and the midsize sedan "Sonata The Edge" get up to 1.2 million won and 2 million won off, respectively. The small SUVs Venue and Kona also get up to 1.2 million won off.
The compact SUV Tucson gets up to 1 million won off, the midsize SUV Santa Fe up to 4.15 million won, and the near-full-size SUV "Palisade" up to 4 million won.
The large RV "Staria" gets up to 3 million won off, and the commercial truck Porter II gets up to 3.9 million won off on the base model and up to 4 million won off on the electric (EV) model.
The electric crossover SUVs Ioniq 5 and The New Ioniq 6 get up to 4.6 million won off. The Kona Electric also gets up to 4.8 million won off, and the maximum discount for the Ioniq 9 is 7.5 million won.
Genesis offers a base 2 million won discount across all models plus an additional 3%–5% off by model. A Hyundai Motor official said, "We will continue to prepare various benefits so customers can choose the vehicle they want without burden."
Kia(000270) also offers discounts through the "Cool Summer Festa." Kia's first pickup truck, Tasman, comes with up to 8.2 million won in purchase benefits. Maximum purchase benefits by model include 3.7 million won for the midsize sedan K5, 6.2 million won for the full-size sedan K8, and 2.5 million won for the midsize SUV Sorento.
For EVs, the maximum purchase benefits are 4 million won for the EV9; 2.8 million won for the EV3 and EV4; 2.5 million won for the EV6; and 2 million won for the EV5. The purpose-built vehicle (PBV) PV5 also offers up to 2 million won in purchase benefits.
Chevrolet of GM Korea is offering low-interest installment plans and a fuel subsidy program (500,000 won) for the small SUVs Trax Crossover and Trailblazer, and a special 1 million won discount when customers who own a small car purchase one of those models.
Renault Korea offers up to 3 million won in fuel subsidies for buyers of the midsize SUV Grand Koleos, depending on the month of production. For the small SUV Arkana, it offers either a 2 million won fuel subsidy or 36-month zero-interest financing.
Cadillac offers up to 3% off to existing GM brand owners who purchase The New Escalade, as well as the all-electric flagship SUVs Escalade IQ and IQL. It also offers a special 2% discount off the vehicle price to corporate and sole-proprietor buyers of The New Escalade.
GMC also offers up to 3% off to existing GM model owners who purchase the full-size SUV Acadia, the pickup truck Canyon, or the SUV Hummer, and provides support for the special consumption tax increase and a multi-child family discount (500,000 won) on the Acadia.