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Lotte Rental Company said it had established a subsidiary in Dubai, in the United Arab Emirates (UAE), named Lotte Auto Global Middle East FZE, to help drive exports of used vehicles to markets in the region from South Korea.
South Korea’s leading vehicle rental company, part of the country’s Lotte Group multinational conglomerate, had previously established Lotte Auto Global, a company specialised in exporting used vehicles from South Korea.
The new subsidiary was expected to strengthen used vehicle exports to the Middle East, North Africa and the Commonwealth of Independent States. The company said it aimed to market the used vehicles in these countries directly to maximise profitability.
Data released by the Korea International Trade Association (KITA) this week showed used car exports from South Korea to Central Asia had increased sharply in the last two years, with shipments to Kyrgyzstan alone tripling to 4,250 units in 2023, followed by a further surge to 5,970 units in the first half of 2024.
Shipments to Kazakhstan also grew strongly year to date, to 1,447 units, while volume to Tajikistan increased to 1,455 units. Analysts believe most of these vehicles are being shipped on to Russia, which is under US led sanctions since it invaded Ukraine in February 2022.
Earlier this year Hyundai Motor Company completed its exit from Russia after it sold its vehicle assembly plant in St. Petersburg plant for a nominal price.
"Lotte establishes Dubai unit to lift used car exports" was originally created and published by Just Auto, a GlobalData owned brand.
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