Popularity of Diesel Vehicles
Competition among diesel cars is taking concrete shape in the local automobile market this year. The subsidies for low carbon vehicles (LCVs), which will be granted from 2015, are expected to add to the race. The subsidies are given to vehicles with less carbon emissions, but surcharges are imposed on those emitting more, which means diesel cars can have an advantage over gasoline-based ones.
Korean automakers such as Hyundai Motor Company are mulling over releasing more diesel models within this year. The foreign carmakers in Korea that concentrated on gasoline vehicles are planning to increase the ratio of diesel cars too.
Hyundai and Kia are currently working on mid-size diesel sedans. The idea is to expand its diesel lineup from D-segment models like the Avante Diesel and K3 Diesel, which were released last year. The new models may hit the market before the end of this year.
The hatchback i30 and wagon i40 of Hyundai came in both diesel and gasoline from their debuts. Last year, 55% of the i30s sold in Korea were diesel models, while the percentage was as high as 76% for the i40s. The K3 Diesel, which was released by Kia Motors in December last year, accounted for just 9% of the total sales volume of the K3 for that month, but the percentage is expected to grow down the road.
GM Korea and Renault Samsung launch the diesel versions of the Malibu and the QM3, respectively, in March. GM Korea is planning to release the 2,000 cc Malibu Diesel ahead of Hyundai’s LF Sonata in order to enjoy some early mover effects. The QM3 of Samsung was unveiled last year, and the actual sale starts from March this year. More than 7,000 purchase contracts have been made so far.
Ford Korea is looking to import more of its diesel vehicles, too. The Focus Diesel, which made its debut in Korea last year, has enjoyed some popularity here, and the automaker is going to boost the popularity by capitalizing on the new models capable of benefiting from subsidies.
In the meantime, consumers are increasing their demand for diesel cars in the used car market as well. According to used car site AutoInside, the ratio of imported cars to diesel vehicles registered between January 2013 and January 2014 went up by 5.09%. In addition, the ratio of imported diesel cars to total imported cars amounted to 27.74% last month, surging from 6.2% of January 2009.