Affordable Options
The popularity of inexpensive cars is rising in South Korea. For instance, KG Mobility sold 6,601 units of the Torres SUV last month, up 19.8 percent from the previous month. Thanks to the SUV, the company sold a total of 8,862 cars last month, setting a new sales record in 28 months. The price of the model is around 28 million won (US$21,362), over 4 million won cheaper than the Hyundai Santa Fe.
GM Korea released the Trax Crossover on March 22 and more than 10,000 customers reserved it in just four days. Its starting price is 20.52 million won (US$15,654), over 4 million won cheaper than the Hyundai Kona. The monthly sales volume of the Kia Seltos, another competitor, fell from 4,924 to 4,631 last month.
According to the Korea Automobile Manufacturers Association, the average price of new cars was 31.3 million won (US$23,878) in 2018 and 42.78 million won (US$32,636) in the first half of last year. “The South Korean market is almost monopolized by Hyundai Motor Group and its cars have become very expensive these days,” said an industry insider, adding, “More and more consumers are seeking economical alternatives.”
Under the circumstances, KG Mobility is planning to launch the EV version of the Torres in the second half of this year at a subsidized price of less than 40 million won. In overseas markets, Volkswagen unveiled the ID. 2all on March 15 and its price is likely to be 25,000 euros (US$27,408) or less. The GM Equinox EV, which will debut in the second half of this year, is likely to be priced at 30,000 euros (US$32,889).