Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
QM3 jumpstarts Renault Samsung
Renault Samsung’s compact SUV new QM3 is displayed outside a cafe, marking the one year anniversary of the car. The vehicle’s iconic duel-tone roof and body as well as the fuel efficiency of the 18.5 kilometers per liter triggered the compact diesel SUV craze in Korea. / Courtesy of Renault Samsung Motors
By Park Jin-hai
By Park Jin-hai
Renault Samsung Motors is expected to continue its bullish business momentum through next year on the back of sales of its latest QM3 sport utility vehicle (SUV), said a top company executive.
“This car is clearly a segment breaker and big success in Korea,” said Francois Provost, Renault Samsung Motors CEO, during a recent one year anniversary event for the popular QM3.
“QM3 had an initial annual sales target of 8,000. But, this year we expect its sales will surpass 18,000, or 230 percent over the target,” said Park Dong-hoon, the company’s executive vice president.
Since its launch last year, it has attracted huge initial demand in pre-orders. It sold all 1,000 QM3s allocated for the country that year in just seven minutes when it took them in November 2013.
The carmaker launched an upgraded version of new QM3 earlier this month.
The vehicle’s iconic duel-tone roof and body, and fuel efficiency of 18.5 kilometers per liter delivered from its 1.5-liter diesel engine triggered the compact diesel SUV craze in Korea, making customers waiting a couple of months to receive the car.
QM3s are produced in the French carmaker Renault’s Spain plant, but they are sold under the Renault Samsung badge here, using local after-sales networks.
“By opening a new segment, we have created our own playground here,” Park said.
Thanks to demand, the company estimates its overall annual sales will grow 30 percent domestically and 25 percent globally by the end of this year.
It sold a total of 146,201 vehicles in the first 11 months of this year, already having surpassed last year’s annual sales of 131,010.
The company also said that it has been racing toward the goal of 70 percent annual growth by 2016 here, becoming the third largest local player only after Hyundai and Kia Motors.
“We imported 3,600 QM3 last month and another 4,000 this month. Next year, the waiting time will not be as long as this year since we plan to secure and import more of them,” Park added.
As for the localization of the QM3, however, Provost said there is no concrete plan to do so yet.
“This car is clearly a segment breaker and big success in Korea. Korea is a very advanced and early adopter market. When you consider this I’m sure there is a big potential not only in Korea but in many other countries in Asia. In that sense, I have to study localization of the QM3 and SM, but until now there has been nothing planned,” he said.
Regarding the sluggish sales of the SM5 sedan, Park said that this is because Hyundai Motor’s Sonata is dominant in the LPG-powered taxi market, but the new SM5 mounting innovative donut-type tank will make a rebound.
“The SM5 LPG model has great potential in the market. The donut-shaped fuel tank is not only about replacing its location but it has greatly improved its performance. Its power-train is regarded as a model case in downsizing. Thus we think it is the right model that could reclaim the local LPG market."