Recently, South Korea's used car exports have been surging, creating new opportunities in the market.

 

According to the Korea International Trade Association, last month South Korea's used car exports reached $761.4 million (approximately 1 trillion KRW), a year-on-year increase of 94.8%, setting a new historical monthly record.

In the used car export park near the Old Songdo Amusement Park in Incheon's Yeonsu District, half of the country's 4,854 used car export companies are located. This park alone houses nearly 20,000 used cars, with transport trailers continuously transporting these vehicles to the port for overseas shipment.

Despite the growing trend of new energy vehicles, why is there still such a large export market for South Korean used cars? South Korean industry insiders attribute this mainly to US sanctions. Buyers from Central Asian countries like Turkey and Kyrgyzstan act as "middlemen," reselling South Korean used cars to Russia. Due to financial constraints, Russians have a high demand for vehicles that are almost new. However, this situation is temporary and is purely due to South Korea's channel advantages in vehicle sales. Even these so-called "near-new used cars" are not cheap in Russia. For example, 2021-2022 models of accident-free SUVs can reach prices of $30,000 to $40,000. This is almost on par with the prices of our full new energy vehicles.

In addition to Russia, this year South Korean used car sales in the Middle East have also increased significantly. Notably, in Syria, following the fall of the Assad regime, used car sales have surged from 144 vehicles throughout last year to 3,084 vehicles last month. Sales in the UAE and Jordan also rose by 263% and 127% respectively last month.

What do these figures reveal? If one only sees the popularity of South Korean used cars, they would be making a big mistake. South Korean used cars, with their plastic-smelling, cheap Plus dull interiors, cannot compare to our domestically produced new energy vehicles, many of which feature advanced technologies. If the two were to compete head-to-head, South Korean cars, whether used or new, would be easily outperformed.

So why are South Korean used cars still selling so well? The reason is simple: their channel development is far superior to ours. In many countries, users do not even have the chance to compare. Therefore, the real takeaway from this news is the vast future market for our new energy vehicles. It is reasonable to believe that once our channels are fully established, this phenomenon will disappear. This also illustrates a truth: there are plenty of opportunities in this world; what is lacking is the ability to discover them.

Looking at these figures, it's clear that there's more to the story than meets the eye. While South Korean used cars may seem popular, it's a mistake to take this at face value. The truth is, when compared to our domestically produced new energy vehicles, which boast cutting-edge technology and superior quality, South Korean used cars simply can't compete. In a direct comparison, South Korean cars, whether new or used, would be easily outmatched.

So, why are South Korean used cars still selling so well? The answer lies in one factor: their superior channel development. In many countries, consumers don't even have the chance to compare. This news actually highlights the vast potential market for our new energy vehicles. It's reasonable to believe that once we establish a comprehensive channel network, this phenomenon will disappear. This also serves as a reminder that opportunities abound in this world; what's often missing is the ability to recognize and seize them.