The streets of Korea now display a new luxury car participant represented by bright green license plates. Since its creation as an anti-tax evasion tool, the green license plate caused luxury vehicle sales of Bentley Porsche and Rolls Royce to plummet drastically.
The Korean Ministry of Land, Infrastructure and Transport made green plates mandatory for company cars costing more than 80 million won to stop cars with high speeds from being labeled business vehicles to evade taxes. Luxury car registrations began to drop because the new measure started working at the start of 2019. The sales figures in the Korea Times show Bentley dropped 77% in the first quarter of 2024 against year prior results as Rolls-Royce and Porsche sales also declined by 35% and 23%.
Opulent buyers steer clear of buying luxury cars because the green license plates signal that new owners do not own these cars personally. The visibility of green plates helps tax officials identify when company car drivers misuse vehicles for personal trips and closes exemption loopholes that allowed family members to benefit from business owner tax advantages.
The segment involving luxury cars experiences major transformation
Luxury car manufacturers experience a clear business impact. According to Korea Times analysis the number of vehicles registered under businesses fell sharply from 40 percent last year to only 28 percent in this year’s data. This result represents their lowest point yet in reaching this percentage mark. Industry professionals say green-plated vehicles get a bad reputation as leasing options that turn off business owners from buying premium fleet vehicles.
Top industry leaders note that weak economic growth reduces demand for luxury vehicles despite this market slump. The latest legislation makes things harder for luxury car manufacturers because they can’t sustain their previous sales success in this market.
Bentley struggles most under these market transformation regulations. In 2023 Bentley recorded flat sales across the world while sustaining its American market leadership but experiencing sales decline of 9% there. Product sales hit a historical number for the third time before doubling personalization service demand. The Bentayga SUV remains Bentley’s best-selling vehicle and new variations including the EWB Mulliner long-wheelbase model strengthen its popularity further.
Car Model Information: 2018 Bentley Bentayga W12
Price: $73,799
Exterior color: Light Onyx Metallic
Interior color: Beluga
Drivetrain: All-wheel Drive
Transmission: 8-Speed Automatic
Engine: 6.0L W12 48V PDI DOHC Twin Turbo
VIN: SJAAC2ZV3JC019648
Mileage: 44,612 mi.
Summary: The Bentley Bentayga is a luxury SUV produced by British marque Bentley Motors. Introduced in late 2015, it is the brand’s first luxury crossover SUV. Its body is manufactured at the Volkswagen Zwickau-Mosel Plant in Germany, then painted and assembled at Bentley’s factory in Crewe, United Kingdom.
Get more information about: Bentley Bentayga
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Businesses that provide luxury cars perform better than expected. Lamborghini and Porsche saw strong sales results and Lamborghini reached its 10,000-vehicle sales milestone. Porsche achieved a 3 percent rise in vehicle delivery numbers while breaking sales records in the US market.
Luxury car brands now invest more in sales promotion as the green plate rule transforms the vehicle market in Korea. Mercedes-Benz Maybach vehicle brand targets its first Korean center launch while Bentley and Rolls-Royce boost tailored programs for their buyers. The market uncertainty has not dampened the luxury car sector’s drive for exclusivity as clients now follow new buying requirements.
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