Toyota Will Sell Cars in Korea Starting in April

02/09/96

NikkeiNet reported that Toyota Motor Corporation will start selling the U.S. made Avalon in South Korea, beginning in April. Establishing a sales base in South Korea will allow the Japanese carmaker to test that market before it sets up an import subsidiary, which is scheduled to be established in 1998.

Toyota has signed a sales contract with one dealer in Seoul and expects to also make deals with other retailers in other cities. Japanese carmakers meet obstacles in Korea such as regulations that ban the import of most cars made in Japan and South Korean reluctance to buy imports. Only 7 out of every 1,000 cars sold annually in South Korea are imported.

The South Korean import market is expected to grow to 20-10,00 vehicles annually, and Toyota is angling for a piece of that action.

Paul Dever -- The Auto Channel