By Yoon Ja-young
Automakers are battling each other in the commercial vehicles market, where customers are becoming more sophisticated than ever.
Foreign automakers are seeking to expand their market share in large trucks, while their Korean counterparts are looking to edge out competitors in the small truck segment.
Volvo Trucks Korea said it will launch three new models for the Asia Pacific market on May 12.
"We are holding a launching event for Asia Pacific in Seoul. We expect that Korea will become strategically crucial in the Asian market, where the demand for commercial vehicles is growing," said a spokesperson for Volvo Truck Korea. The company sold over 1,400 trucks last year in Korea.
Navistar, a U.S. company that manufactures trucks and other vehicles, launched two models in Korea early this year. Similarly, Daimler Trucks Korea unveiled the Actros Tipper in February, while Scania Korea, a subsidiary of Volkswagen, is promoting the new Streamline.
Foreign automakers mostly sell large trucks with a capacity of over 16 tons. They are also focusing on the sophisticated needs of Korean consumers.
"As customers use the truck as the foundation of their businesses, the vehicle means a lot. They value not only durability but also fuel efficiency," said the Volvo spokesperson. Drivers of large trucks often spend over 5 million won a month on fuel.
She also said the intensifying competition is an opportunity for the company to increase its share of the pie.
Meanwhile, a spokesperson of the Korean subsidiary of Man, a Germany-based truck manufacturer, said the company has a bright outlook.
"Despite the global economic recession, sales of Man trucks in the country grew over threefold each year for the past three years. Our headquarters recognizes the huge growth potential of the market," he said.
According to the Korea Customs Service, truck imports grew by 64.8 percent from 2009 to 2013, recording a total value of $213 million. Currently, European companies account for 55 percent of the large truck market in the country.
The competition among Korean commercial vehicle manufacturers is also heating up.
According to industry data, Porter, a one-ton truck manufactured by Hyundai Motor, was the bestselling vehicle in the country in March with 9,488 units sold. Sales increased by 26.7 percent from the previous month and by 31.2 percent from a year ago.
Two other commercial vehicles were in the top 10 bestselling vehicle list for March ― Kia Motors' Bongo was seventh, and Hyundai Motor's Starex was eighth.
Industry analysts say the popularity of commercial vehicles is impressive.
"Porter is a steady seller. You usually have to wait a few months from order to delivery. Sales automatically rise if you increase the production of this truck. Many units were sold as there was no hurdle on the production side," a Hyundai Motor spokesperson said.
Some analysts say the increase in sales of commercial vehicles reflects the economic recovery, during which more people are starting their own business.
For example, some buy a one-ton truck for selling vegetables or fruits, or for delivering a wide range of products. Commercial vehicle sales are expected to increase even more as the government plans to ease regulations on food trucks.
The Hyundai Motor spokesperson said Porter sells a lot in both good and bad economic times. "Some say the Porter's sales are a sign of the economic recovery, but others take it as a bad sign ― that people have lost their jobs and are now trying to start a small business by buying a truck."
Automakers are battling each other in the commercial vehicles market, where customers are becoming more sophisticated than ever.
Foreign automakers are seeking to expand their market share in large trucks, while their Korean counterparts are looking to edge out competitors in the small truck segment.
Volvo Trucks Korea said it will launch three new models for the Asia Pacific market on May 12.
"We are holding a launching event for Asia Pacific in Seoul. We expect that Korea will become strategically crucial in the Asian market, where the demand for commercial vehicles is growing," said a spokesperson for Volvo Truck Korea. The company sold over 1,400 trucks last year in Korea.
Navistar, a U.S. company that manufactures trucks and other vehicles, launched two models in Korea early this year. Similarly, Daimler Trucks Korea unveiled the Actros Tipper in February, while Scania Korea, a subsidiary of Volkswagen, is promoting the new Streamline.
Foreign automakers mostly sell large trucks with a capacity of over 16 tons. They are also focusing on the sophisticated needs of Korean consumers.
"As customers use the truck as the foundation of their businesses, the vehicle means a lot. They value not only durability but also fuel efficiency," said the Volvo spokesperson. Drivers of large trucks often spend over 5 million won a month on fuel.
She also said the intensifying competition is an opportunity for the company to increase its share of the pie.
Meanwhile, a spokesperson of the Korean subsidiary of Man, a Germany-based truck manufacturer, said the company has a bright outlook.
"Despite the global economic recession, sales of Man trucks in the country grew over threefold each year for the past three years. Our headquarters recognizes the huge growth potential of the market," he said.
According to the Korea Customs Service, truck imports grew by 64.8 percent from 2009 to 2013, recording a total value of $213 million. Currently, European companies account for 55 percent of the large truck market in the country.
The competition among Korean commercial vehicle manufacturers is also heating up.
According to industry data, Porter, a one-ton truck manufactured by Hyundai Motor, was the bestselling vehicle in the country in March with 9,488 units sold. Sales increased by 26.7 percent from the previous month and by 31.2 percent from a year ago.
Two other commercial vehicles were in the top 10 bestselling vehicle list for March ― Kia Motors' Bongo was seventh, and Hyundai Motor's Starex was eighth.
Industry analysts say the popularity of commercial vehicles is impressive.
"Porter is a steady seller. You usually have to wait a few months from order to delivery. Sales automatically rise if you increase the production of this truck. Many units were sold as there was no hurdle on the production side," a Hyundai Motor spokesperson said.
Some analysts say the increase in sales of commercial vehicles reflects the economic recovery, during which more people are starting their own business.
For example, some buy a one-ton truck for selling vegetables or fruits, or for delivering a wide range of products. Commercial vehicle sales are expected to increase even more as the government plans to ease regulations on food trucks.
The Hyundai Motor spokesperson said Porter sells a lot in both good and bad economic times. "Some say the Porter's sales are a sign of the economic recovery, but others take it as a bad sign ― that people have lost their jobs and are now trying to start a small business by buying a truck."
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