Honda Accord Now For Sale In South Korea - Turn-about is Fair Play

SEOUL, May 10, 2004; Reuters reported that Honda Korea Co, a subsidiary of Japanese car maker Honda Motor Co, launched sales of its flagship Accord sedan in South Korea on Monday, marking its first foray into a market still dominated by domestic auto makers. A Honda Korea official said the model would be sold at "competitive" prices in a bid to attract buyers in the short-run and that it was targeting sales of some 800 units this year.

Online South Korean news agency Edaily reported Honda had targeted sales of 2,000 units per year but the official declined to comment on the report.

Industry watchers said Honda's Accord would compete with the mid-sized sedan Grandeur XG, made by South Korea's top auto maker Hyundai Motor Co. Hyundai sold more than 42,000 units of the model last year.

Honda, Japan's second-biggest auto maker behind Toyota Motor Co, said it planned to launch sales of a four-wheel drive sports utility vehicle around October and establish four dealerships this year, three in Seoul and one in the southern port city of Pusan.

Imported vehicles are expected to register double-digit growth in South Korea's auto market over the next few years, but their market share was unlikely to top five percent by 2007, the Korea Automobile Importers and Distributers Association said.

Foreign car makers sold 19,460 vehicles in South Korea last year for a two percent market share, data from the association showed.