Renault Korea and GM Korea are below rising stress to launch new automobiles, as an absence of recent fashions has led to a pointy decline of their gross sales, business knowledge confirmed Wednesday.
Each corporations have lengthy been thought of two of the so-called mid-tier automakers in Korea by way of gross sales quantity, however their positions at the moment are being threatened by fast-rising manufacturers like Tesla and strong gross sales efficiency from different standard German luxurious automakers.
Renault Korea knowledge reveals it offered 7,201 automobiles final month, down 42.2 % from the earlier 12 months.
The sharp gross sales decline is attributable to the carmaker’s gross sales reliance on the Grand Koleos SUV and the Arkana compact SUV.
Renault Korea loved a long-awaited rebound in gross sales final 12 months, pushed by the success of its Grand Koleos hybrid SUV, for which cumulative gross sales reached 51,000 automobiles as of the tip of final month.
Nonetheless, the brand new mannequin gross sales impact has since light only a 12 months after its debut, as evidenced by the automaker’s drop in month-to-month gross sales in October.
Renault Korea goes all out to spur gross sales development with the upcoming launch of the Aurora 2 undertaking subsequent 12 months. The Grand Koleos was the primary chapter within the undertaking that was designed to assist the carmaker rebound in Korea.
GM Korea’s Trax Crossover / Korea Occasions file
GM Korea is in the same scenario, with gross sales falling by double digits final month. The carmaker’s whole automobile gross sales — together with each home and abroad markets — dropped 20.8 % in October from a 12 months earlier.
The automaker depends on gross sales of its Chevrolet Trax Crossover and the Trailblazer SUV. GM Korea plans to introduce a brand new mannequin — the Cadillac Escalade IQ electrical SUV — for the native market this month.
Even when the automobile is seen as a superb possibility for these looking for luxurious electrical SUVs, it’s unlikely to drive a serious gross sales rebound for the carmaker as a result of it’s thought of a high-end mannequin.
The decline in gross sales for Renault Korea and GM Korea stands in distinction to the efficiency of KG Mobility (KGM).
KGM can also be thought of a mid-tier automaker right here, alongside the native subsidiaries of Renault and GM. KGM’s auto gross sales elevated 2.9 % throughout the identical interval, pushed by the carmaker’s technique specializing in the launch of recent automobiles for the worldwide market.
KG Mobility’s Musso EV / Courtesy of KG Mobility
Trade officers mentioned the mid-tier carmakers could lose extra market share to rising rivals, until they diversify their automobile lineups for Korea and key export markets.
“The carmakers don’t have any selection however to hurry up their launches of recent automobiles for his or her sustainable development, at a essential time when Tesla is quickly absorbing demand for eco-friendly automobiles in Korea,” an auto business official mentioned. “On prime of that, Hyundai Motor Group can also be quickly diversifying its auto lineups geared up with a hybrid powertrain in step with rising demand for eco-friendly automobiles.”
