Trying to get the reason for what happens in a given situation is not easy. It can come down to getting the facts as best we can and then interpreting them. However, we may not have enough information for an informed opinion and the Korean car market is like that for me. The sudden shifts that occur don't give the appearance of market forces alone. Is it corporate decisions or external pressures?
A few years back, premium imports boomed in Korea and the likes of JLR were beneficiaries of that along with other marques. Then around 2018, something happened. No explanation I've read about but other import premium marques continue to grow so why is JLR falling away in such a striking manner?
Below is a comparison with Japan, a nearby nation. Its sales have climbed consistently since 2009, with 2021 looking like being a record for the period under consideration. I've added an estimate for 2021 in a slightly different colour. Sales have gone from barely over 500 in a depressed 2009 to perhaps 5,000 by the end of the year, assuming disruptions don't impact too much in that time.
Korea started out much the same but by 2018, registrations passed had 11,500. Then something happened and the number will do well to exceed 2,500 in 2021. If direct competitors were experiencing the same fall then it would be a broader issue. The reduction is too steep to be just a loss of public interest or confidence. If the reason(s) have been explained, I didn't get the memo.
Turning to Jaguar was one way I hoped to clarify things but all that did as far as I was concerned was muddy the waters. The movements are much more consistent and in harmony with the Jaguar brand repositioning itself as a boutique brand rather than chase volume. One point of note is that while Jaguar finding its level in Japan, it's still in freefall in Korea. Some mysteries just aren't going to be solved.
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| Sunny times ahead I wager for Jaguar |
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