Vehicle sales affected by those farming for 'post-retirement life'

Gains in new car purchases in the first half of this year were the largest among people aged 60 and over. Analysts said that many retirees purchased commercial vehicles such as Hyundai Motor’s Porter and Kia’s Bongo to start small businesses.

According to the CarIsYou Data Research Institute on Wednesday, people in their 60s and older by age group in the number of new car registrations in this year’s first half accounted for 144,793, up 34.2 percent year-on-year. The gain in this age group was the largest among all age groups. It was followed by those in their 50s (25.1 percent), 40s (10.8 percent), 30s (8.6 percent), and 20s and younger (7.2 percent).

This is likely due to an increase in the number of people aged 60 and over who are starting a ‘post-retirement life.’ The most popular new car purchased by people in their 60s in this year’s first half was the Hyundai Porter light truck (11,140 units). It was followed by the Hyundai Grandeur sedan (10,380 units) and the Kia Bongo light truck (5,797 units). Among people in their 70s, the Porter (2,554 units), the Grandeur (2,294 units), and Bongo (1,383 units) were the top three.

"The Grandeur has been a steady seller among people in the 50s and 60s," said an automotive industry insider, adding, "Except for the Grandeur, a growing number of people are buying the Porter and the Bongo as they start self-employed businesses or return to rural regions after retirement."

In the first half of the year, sales of hybrid vehicles increased sharply amid the growing popularity of eco-friendly vehicles. In terms of new vehicle registrations by fuel type, hybrid vehicles accounted for 151,108 units, up 42.9 percent year-on-year. Electric vehicle sales increased by 13.7 percent and gasoline vehicles by 13.6 percent. On the other hand, diesel vehicles decreased by 3.8 percent.


Teuk-Gyo Koo kootg@donga.com