Audi Volkswagen Korea, the local unit of German automakers Volkswagen AG and Audi AG, will resume the sale of its cars in South Korea this month, more than a year after the sale of their vehicles was suspended in the wake of an emissions-test cheating scandal.

On Monday, Audi said it has launched the latest model of its flagship high-performance R8 sports vehicle - the New Audi R8 V10 plus Coupe - in Korea almost two years after the Korean Ministry of Environment revoked certifications and banned the sale of its most car models in November 2015 and August last year upon finding that the carmaker fabricated emissions reports to receive sale permission in Korea. In March this year, the automaker voluntarily halted the sale of all models as part of self-verification efforts.

The Audi R8 model is a high-end sports car that is priced at 249 million won ($223,602) per unit, including value-added tax. The model is not a volume model as its average monthly sales are estimated at 10 units elsewhere, but its launch is expected to help reignite interest in the German auto brand that has seen a plunge in its car sales in Korea following the Korean government’s decision to revoke licenses for Audi and Volkswagen existing cars. Volkswagen has reported zero in its new car sales in the country since November last year, and Audi since April this year.

Some industry experts cautiously projected that Audi’s return with its latest sports car model would heat up competition in the Korean import car market that is currently dominated by two other Germany luxury carmakers Bayerische Motoren Werke AG (BMW) and Mercedes-Benz. Before the sales ban in 2015, BMW topped the local import car market with a 19.6 percent share, followed Mercedes-Benz with 19.3 percent, and Audi with 13.3 percent. The combined market share of Audi and Volkswagen (14.7 percent) was 28.0 percent, accounting for more than one fourth of Korea’s import car market.

Audi Volkswagen Korea has applied for certification and recertification of total 12 car models at the Korean Ministry of Environment - four Volkswagen and eight Audi models including Audi’s luxury R8, SUV Q7, flagship A4 and A6 sedans, and Volkswagen’s signature model Tiguan and Passat. The Korean unit in early August said that it already obtained new licenses for Audi R8 and two sport utility vehicle (SUV) Audi Q7 models - 35 TDI Quattro and 45 TDI Quattro powered by a diesel engine - from the environment ministry.

The German brands are gearing up to revive demand for their cars in the country. In September, Audi Volkswagen Korean was reported to be working with Korea’s biggest messaging app operator Kakao Corp. to set up its online sale platform in Kakao Mobility, a transportation service by Kakao, a move that was expected to offset a fall in its dealership in the country following the sale ban. Volkswagen also launched an officially approved second-hand car program in Korea last month.

By Lee Seung-hoon and Lee Eun-joo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]