Second sales boom for Compact SUVs

By Park Jin-hai

Car dealers are enjoying another boom in sales of sports utility vehicles, similar to a peak of transactions seen in 2004.

In the first eight months of this year, SUV sales by the country's five carmakers ― including Hyundai Motor, GM Korea and Renault Samsung Motors ― hit 213,144, according to the Korea Automobile Manufacturers’ Association (KAMA). This accounts for 27 percent of all vehicle sales in the period.

“That means nearly one out of three cars sold to customers turns out to be an SUV. At this pace, we might see their sales passing the 300,000 mark, or taking up 30 percent of all new car sales this year,” a KAMA official said.

The total is larger than the market share of 17.9 percent reached by midsize sedans, and 15.7 percent by compacts in the same period.

SUVs’ sales peaked in 2004, when they accounted for 30.6 percent of all cars sold in the country, but lost ground in subsequent years.

“What is different this time is that the small-size SUVs are leading the sales, as did the classic SUVs like the Hyundai Motor Sorento, Land Rover and BMW X5 some years ago,” he added.

“They particularly cater to female drivers, as well as young drivers who favor compact SUVs since they are cheaper but better fuel economy than bigger, muscular models.”

Local and imported carmakers are jumping on the bandwagon. They are competitively rolling out new SUV models.

Since GM Korea launched the first compact SUV, the Chevrolet Trax, in February of last year, Renault Samsung Motors and Ssangyong Motor rolled out their small-size SUV models, the QM3 and new Korando C, further expanding the market.

With their sales relatively strong, local carmakers are introducing new compact SUV models.

Ssangyong, the local unit of Indian automobile giant Mahindra & Mahindra, is about to launch its compact SUV, the X100. After the Paris Motor Show next month, the new vehicle is slated to hit the local market early next year.

Hyundai Motor’s small–size SUV, the ix25, awaits its debut in China next month.

Although it is the strategic model for Chinese drivers, sources say that it is highly likely to be introduced in the local market as well, as the company will want to capitalize on the fast-expanding small-size SUV market here.

The imported luxury cars are launching small version SUVs one after another. Following Mercedes-Benz’s recent launch of the 40-million-won-range GLA, Ford, Lexus and Nissan all are lining up to launch their compact SUVs ― the all new Lincoln MKC, NX300h and Qashqai, respectively, later this year.

Porsche, which is selling the V-8 engine SUV Macan here, will join the competition by introducing a more affordable V-4 engine version.