Renault Korea Targets Market with ‘Scenic’ and KGM with ‘Musso’
Last year, Renault Korea, KG Mobility, and GM Korea – domestic mid-sized automobile manufacturers – sold fewer cars than imported brands like BMW and Mercedes-Benz. This year, these carmakers are focusing on expanding their domestic sales. Renault Korea and KG Mobility are planning to introduce new car models to regain their market share in Korea. GM Korea, on the other hand, exports most of its domestic production.
According to the Korea Automobile Manufacturers Association (KAMA), GM Korea sold 4,881 units in January-February last year, but this figure dropped by 44.4% to 2,711 units in the same period this year. KG Mobility also struggled, selling 4,976 units this year compared to 7,510 units in the same period last year. Conversely, Renault Korea sold 7,482 units, marking a 116.7% increase in sales thanks to the popularity of its mid-sized SUV, the Grand Koleos.
The three mid-sized manufacturers are preparing to launch new models to regain market share. Renault Korea plans to introduce the all-electric sedan, Scenic, from France’s Renault. The Scenic is currently undergoing government certification and was named Car of the Year at the Geneva International Motor Show last year. Additionally, for the Aurora2 model launching next year, new robots have been introduced at the Busan plant.
KG Mobility is tapping into consumer nostalgia by turning ‘Musso’ into a pickup truck brand. The Musso, an SUV originally launched by SsangYong Motor (KG Mobility’s predecessor) in 1993, was very popular in Korea. The current Musso is a pickup truck brand by KG Mobility, which launched Korea’s first electric pickup truck, the Musso EV, on March 5th.
The Musso will be available not only as an electric vehicle but also with internal combustion and hybrid electric vehicle (HEV) options. KG Mobility also launched the HEV model of its medium SUV, Torres, on March 12th, the company’s first-ever hybrid vehicle.
In response to potential tariff policies under Donald Trump’s second-term administration, GM Korea is devising countermeasures. Since 85% of GM Korea’s exports are to the U.S., potential tariffs on imported vehicles could significantly impact them. Recently, Silpan Amin, GM Korea’s president, urged employees to focus on their tasks while closely monitoring and responding to the situation.
Industry experts are hopeful about the impact of new vehicle launches from these mid-sized manufacturers, considering the success of the Grand Koleos. In 2016, when the mid-sized sedan SM6 was launched, Renault Korea sold over 110,000 units annually, and the same year, GM Korea’s annual sales reached approximately 180,000 units with the launch of the Chevrolet Malibu. An industry insider remarked, “Smart new car launches like the Grand Koleos are necessary. Reviving these three mid-sized manufacturers will foster better competition in the domestic automobile market.”