Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Uber Ordered to Pay $8.5 Million in Bellwether Sexual Assault Lawsuit 
Instagram Outage Disrupts Thousands of U.S. Users 
Weight-Loss Drug Ads Take Over the Super Bowl as Pharma Embraces Direct-to-Consumer Marketing 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
Washington Post Publisher Will Lewis Steps Down After Layoffs 
Ford and Geely Explore Strategic Manufacturing Partnership in Europe 
American Airlines CEO to Meet Pilots Union Amid Storm Response and Financial Concerns 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
In an unprecedented shift within the luxury car market in South Korea, sales of high-end brands like Bentley, Porsche, and Rolls-Royce have plummeted following the government's introduction of a new taxation rule. The rule, which mandates the use of green license plates for company-owned vehicles valued over 80 million won ($57,800), came into effect at the beginning of 2024.
Korea Times reported that this regulation aims to prevent business owners from buying supercars under their companies to avoid taxes.
Dramatic Declines in Sales
Data provided by the Korea Automobile Importers & Distributors Association (KAIDA) reveals a significant drop in the importation and registration of luxury cars. In March alone, 3,868 luxury imported vehicles were newly registered in South Korea, marking a 31.4% decrease from the year prior. Notably, Bentley experienced a dramatic 77.4% decrease in registered vehicles for the first quarter compared to the previous year.
Similarly, Rolls-Royce and Porsche, which recently launched an improved hybrid Panamera in Korea, as per Korea Joongang Daily, reported declines of 35.2% and 22.9%, respectively.
Industry Reactions and Impact
Officials from luxury car manufacturers suggest that the decline in demand is primarily due to the negative perceptions associated with the lime green plates often linked to rental and lease vehicles. The sentiment poses particular disadvantages for business owners purchasing luxury cars as fleet vehicles.
More broadly, the proportion of company-owned luxury cars has decreased, with imported company cars falling below 30% of total registrations for the first time. This decline is significant, considering nearly 40% of imported vehicles were registered company-owned last year.
Broader Economic Implications
Other industry representatives attribute the sharp fall in sales to the new regulation and the prevailing economic downturn. With the economy showing no immediate revival, demand for expensive vehicles naturally decreases. The combination of an economic slump and strict new regulations poses significant challenges for supercar manufacturers, hampering their efforts to sustain sales performance in the South Korean market.
Photo: Marvin Meyer/Unsplash
