Collapse of Honda after Volkswagen·BMW in Korea
[Mediapen=Kim Sang-jun] Japan’s trade restrictions are backfiring on Honda Korea.

After Volkswagen’s diesel gate and the burning of BMW cars, consumers in Korea turned their eyes to Japanese cars. With this flow, Honda Korea quickly increased their market share. 

However, the anger ignited by Japan’s move is turning to Japanese product, posing a big threat to Honda.

Customers visiting Honda showroom have noticeably decreased. Consumers who signed purchase contracts are expressing their anger by canceling it.

No visitors were to be found in a Honda showroom located in Gangnam when visited recently. This showroom used to record high sales until the trade restrictions.

   
▲ Empty showroom of Honda Korea/Source=Mediapen


The dealer at the store sighed and said the number of visitors decreased sharply. “I feel bad about Japan’s move myself. However, I wish consumers would not relate political issues with  products,” he said.

Before the economic warfare, customers had to wait at least 2 to 3 months to receive Honda’s popular model Accord Hybrid. However, this shortened to only 1 day.

An official from the import car industry warned that sales of Japanese car will keep dropping if the current situation continues. He also mentioned that Korea customers will likely choose domestic hybrid models as substitutes.