This year, domestic mid-sized automakers Renault Korea, KG Mobility, and GM Korea are expanding domestic sales, after selling fewer vehicles last year than imported brands such as BMW and Mercedes-Benz. Renault Korea and KG Mobility have reported that recovering their market share in South Korea is urgent and plan to increase new vehicle offerings. GM Korea exports most of its domestic production.
According to the Korea Automobile Mobility Industry Association (KAMA), GM Korea sold 4,881 units during January and February last year, while sales for the same period this year dropped to 2,711 units, a 44.4% decrease. KG Mobility, which sold 7,510 units in January and February last year, also struggled this year with sales of 4,976 units. Thanks to the popularity of the mid-size sport utility vehicle (SUV) Koleos, Renault Korea saw a sales increase to 7,482 units, up 116.7% from last year.
The three mid-sized automakers are preparing to launch new vehicles to recover their market share. Renault Korea plans to introduce the all-electric sedan Scenic from Renault in France. The Scenic, which is currently undergoing government certification, was named Car of the Year at the Geneva International Motor Show last year. A new robot has also been introduced at the Busan factory for the Aurora World expected to launch next year.
KG Mobility is creating nostalgia for consumers by branding the 'Musso' as a pickup truck. The Musso, an SUV launched in 1993 by Ssangyong Motor, which was the predecessor of KG Mobility, gained great popularity in South Korea. The current Musso is KG Mobility's pickup truck brand. On the 5th, KG Mobility launched the Musso EV, the first electric pickup truck in the country.
The Musso is expected to be released not only as an electric vehicle but also as an internal combustion engine and hybrid electric vehicle (HEV). KG Mobility also launched the HEV model of the mid-size SUV Torres, which has been its flagship vehicle for several years, on the 12th. This car is KG Mobility's first HEV.
GM Korea is preparing measures in response to the tariff policies of the second Donald Trump administration. With 85% of its exports going to the United States, GM Korea anticipates being adversely affected if tariffs are imposed on imported vehicles. Recently, Amin Silpan, the president who visited GM Korea, told employees, 'We are closely monitoring and responding, so please focus on your current work.'
The industry is hoping for a rebound from the three mid-sized automakers, given how the Koleos created a sensation. When the mid-size sedan SM6 was launched in 2016, Renault Korea sold about 110,000 units annually. In 2016, the Chevrolet Malibu was also launched, and GM Korea's annual sales at that time reached 180,000 units. An industry insider noted, 'Smart new vehicle launches like the Koleos seem necessary. The three mid-sized automakers must recover to facilitate competition in the domestic automobile market.'