South Korea’s five automakers are planning to launch new or replacement models starting this month in an attempt to overcome a prolonged slump in local sales that contrasts with strong exports.
Go deeper with GlobalData
Local sales last year fell 17% to 1.09 million units while exports surged 42% to 3.43 million units.
Hyundai Motor, which accounts for about half of domestic sales, plans a 9.8% increase this year to 605,000 units, spurred by five new or redesigned models. Hyundai also hopes to boost exports by 15.3% to 1,784,000 units.
Spokesman Jake Jang said local sales growth would be helped by a redesigned XG sedan in April and the Santa Fe SUV replacement in the second half, plus the long-awaited domestic market introduction of diesel passenger cars.
Jang added that the diesels will give home market customers – who are becoming increasingly “fuel-conscious” because of rising oil prices – more choice.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHyundai will launch a 1.5-litre diesel version of the revised Verna in April, the Avante XD and Lavita in September and a diesel Sonata at the end of the year.
Also in April it will replace the current petrol XG350 sedan with the 25% more powerful TG. This will also be sold in the US with a 3.8-litre V6 from the second half of 2005.
Kia has a new model Rio in March, followed by the replacement Optima and Carnival minivan in the second half. It will launch the diesel 1.5-litre Cerato and Morning in the first half.
GM Daewoo Automotive & Technology will start importing a version of the Statesman from GM’s Australian subsidiary Holden as a new flagship in the first half.
A redesigned Matiz is also on the list for 2005. Next year, GM Daewoo will launch a diesel SUV in South Korea, and this will also be exported to the US and Europe.
SUV maker Ssangyong Motor Co., newly acquired by China’s Shanghai Automotive meanwhile, plans to launch a 2.7-litre common rail diesel-powered replacement for the ancient Musso in the second half.
Spokesman Jeong Moo-young said: “We will, definitely, export it to Europe, where 70% of our exports are sold.”
Renault Samsung Motors plans a January 25 launch of the redesigned SM5 sedan, a Nissan Maxima derivative that arrived in 1998.
“The old SM5 used the Maxima platform but the new car will be based on Nissan’s Teana like the SM7,” said spokesman Suh Kyu-Ouk.
Renault Samsung also plans a diesel version of the SM3, which is based on Nissan’s Bluebird Sylphy.
The Korean automakers face an uphill battle at home, however. A recent government report said that consumer confidence fell to a four-year low in December.
Peter Chang
