Core Insights - The article discusses the strong preference of South Koreans for neutral-colored cars, often humorously referred to as "sushi on wheels" due to the predominance of black, white, and gray vehicles on the roads [1] - A significant 76% of all cars sold in South Korea in 2024 are expected to be in non-color categories, with white alone accounting for 33%, surpassing both European and global averages [1][2] - Cultural factors, including Confucian values and historical preferences for white clothing, contribute to this trend, as cars are viewed as assets with resale value in South Korea [2][3] Market Trends - Data from Encar indicates that neutral-colored cars sell faster and depreciate less than colorful ones, with neutral Genesis G80s taking about 60 days to sell compared to 65 days for colorful versions [2] - The resale price of neutral-colored G80s drops approximately 16%, while colorful versions see a decline of 17% [2] - The trend is slowly changing, with 24% of cars sold in 2024 expected to be in bright colors, up from 20% in 2015, indicating a shift towards personal expression through vehicle color [3][4] Manufacturer Responses - Traditional manufacturers are beginning to embrace color options, with Hyundai introducing emerald green for an SUV and Kia adding blue and beige for its first pickup [4]

Core Viewpoint - The Chinese automotive market is undergoing a significant structural adjustment, with domestic brands increasing their market share at the expense of foreign brands, which now hold less than 35% of the market [4]. Group 1: Domestic Brand Growth - In 2024, domestic passenger car sales are projected to reach 17.97 million units, accounting for 65.2% of total passenger car sales, an increase of 9.2 percentage points year-on-year [4]. - In April 2025, domestic brands achieved retail sales of 1.15 million units, a year-on-year increase of 31%, with a market share of 65.5%, up 8 percentage points [4]. - From January to April 2025, domestic brands held a retail market share of 64%, an increase of 7.9 percentage points compared to the previous year, particularly gaining in the new energy and export markets [4]. Group 2: Challenges Faced by Foreign Brands - Kia is struggling in the Chinese market due to a lack of clarity in positioning and slow progress in electrification, with only 21.5% of global sales being electric models in 2024 [6]. - Skoda's sales in China fell by 23.1% year-on-year to 17,500 units in 2024, as it is squeezed by both the Volkswagen brand's price cuts and the competitive offerings from domestic brands [9][10]. - Jeep's focus on SUVs has led to a disconnect with Chinese consumer preferences, resulting in a decline in brand presence and market share [11]. Group 3: Global Performance of Foreign Brands - Despite challenges in China, Kia remains strong in its home market and is expanding in North America and Europe, achieving over 3 million global sales in 2024 [20]. - Skoda's global sales reached 926,600 units in 2024, with strong performance in Europe, particularly in Germany, the Czech Republic, and the UK [21]. - Jeep's brand recognition and performance in North America remain robust, with 90% of its global sales coming from this market, totaling 587,800 units in 2024 [23]. Group 4: Lessons Learned - The struggles of foreign brands in China highlight the importance of understanding local consumer preferences and adapting product strategies accordingly [28]. - Successful global strategies require a deep understanding of localization, which encompasses product definition, technology routes, brand communication, and supply chain management [29]. - Brands must recognize their positioning and strengths, focusing on markets that align with their core competencies rather than pursuing broad-scale expansion [29].