South Korea: 70 New Cars to Make Debut in 2005

Seoul January 13, 2005; Na Jeong-ju writing for the Korea Times reported that Korean and foreign carmakers plan to adopt aggressive marketing strategies to overcome sluggish car sales in the domestic market with up to 70 new models to be introduced to Korean customers this year.

New diesel-powered compact cars will go on sale in the first half of the year and newer generations of popular sport utility vehicles (SUVs), such as Ssangyong Motors’ Musso and Hyundai Motor Company’s Carnival, are part of the lineup.

Foreign carmakers will release more than 50 new models to capitalize on the upturn of foreign car sales. Despite a downturn in overall car sales, yearly sales of foreign cars broke though the plateau of 20,000 units last year, posting a 25 percent year-on-year growth, as large income-earners favored import sedans. The trend is expected to continue this year and another double-digit growth in sales will not matter, according to the Korea Automobile Importers and Distributors Association (KAIDA).

Hyundai Motor, the largest Korean auto firm, is setting its sights on increasing control of the large car segment. The firm plans to release a subsequent model of the popular Grandeur XG sedan in April to capture the hearts of potential high income buyers.

Adopting brand new engines with more fuel efficiency and power, the next-generation Grandeur XG, whose name is still under wraps, will compete with Renault Samsung Motors’ SM7, Ssangyong’s Chairman and other big names. Hyundai will also unveil diesel-powered models of the compact Verna and Avante and the SUV Lavita in April.

In the second half of the year, a diesel Sonata sedan and a new model of the Santa Fe SUV are scheduled to hit the market.

Kia Motors, the second-largest auto firm, will seek to regain its past glory as leader of the small car segment with a new version of the compact Pride, a mega hit in late 1980s and early 1990s. Kia will manufacture a 1,600cc Pride to encroach upon the semi-compact car market.

GM Daewoo Auto & Technology is now preparing for a new takeoff in the luxury car market after impressive sales in the compact car market. The firm said it will bring the Statesman sedan, currently sold in Australia for some 50 million won ($47,000), to the Korean market in April. A new Matiz, a popular mini car, will also be released in March and face-lifted models of the Kalos and Magnus will hit the market in the latter half of the year.

Renault Samsung Motors’ new SM5, to be unveiled on Jan. 25, is in the eye of the storm. To continue the success of the sedan, the firm has upgraded SM5 models in a close partnership with Nissan of Japan. The firm wants to incite the jitters among competitors with the new model, which will share production lines with Nissan as well as other Renault Samsung models.