The government of South Korea recently announced all company cars priced at more than $58,000 (R1.1m) would be identified through green licence plates, excluding vans, trucks and special purpose vehicles.
It was implemented as a means to avoid tax-dodging, intended to curb the practice of using luxury company cars for personal engagements and writing them off as a business expense.
The plates indicate the cars are not privately-owned vehicles, and the move hasn’t gone down well with status-conscious motorists. The new law has been blamed for plummeting luxury car sales due to the societal aversion for rented or leased vehicles.
Premium car sales have decreased 27% since the green plates were introduced in January, with some analysts blaming the “garish” licence plates for the slump. An automotive executive described the green plates as “uncool” and hurting the interest in luxury brands in places such as the Gangnam District well-known for its upmarket shopping centres and love of designer brands.
Compared to the first quarter of 2023, sales of Bentleys in 2024 have plunged 77%, Porsche is down 23% down and Rolls-Royce experienced a 35% slump in South Korea.
International News
‘Uncool’ green number plates stifle luxury car sales in South Korea
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The government of South Korea recently announced all company cars priced at more than $58,000 (R1.1m) would be identified through green licence plates, excluding vans, trucks and special purpose vehicles.
It was implemented as a means to avoid tax-dodging, intended to curb the practice of using luxury company cars for personal engagements and writing them off as a business expense.
The plates indicate the cars are not privately-owned vehicles, and the move hasn’t gone down well with status-conscious motorists. The new law has been blamed for plummeting luxury car sales due to the societal aversion for rented or leased vehicles.
Premium car sales have decreased 27% since the green plates were introduced in January, with some analysts blaming the “garish” licence plates for the slump. An automotive executive described the green plates as “uncool” and hurting the interest in luxury brands in places such as the Gangnam District well-known for its upmarket shopping centres and love of designer brands.
Compared to the first quarter of 2023, sales of Bentleys in 2024 have plunged 77%, Porsche is down 23% down and Rolls-Royce experienced a 35% slump in South Korea.
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