Compact hatchback market heats up

By Kim Tae-jong

The nation’s compact hatchback market is heating up as Volkswagen has recently joined the fierce competition by launching the Polo here with the TDI R-Line, one of the best-selling models in the German company’s lineup. Over 16 million Polos in hatchback, saloon, coupe and estate variants have been sold worldwide since the launch of its first-generation model in 1975.

Volkswagen Korea is pinning high hopes on the new model, especially after its massive success with the Golf series. Some 6,220 Golfs in six variants were sold here last year alone.

The Polo is available for 24.9 million won and the firm said price is its main competitiveness edge, because the tag here is even lower than that in Germany. In fact, the Polo is one of a few imported cars sold at prices lower than 30 million won.

The company pledged an aggressive marketing to attract younger customers, setting a sales target of 2,000 annually.

But for some people, the launch of the Polo may seem to be the wrong decision, given that the compact hatchback segment has been long neglected by drivers here, due to the domination of sedans and sports utility vehicles (SUVs).

But imported and local automakers have launched various hatchback models to meet the growing demand from drivers who seek a car that combines the driving comfort of a sedan and the practicality of an SUV.

“The launch of various hatchback models is in line with automakers’ efforts to diversify their lineup, as young drivers want to own something different from the older generations who prefer sedans,” said Kim Pil-soo, a professor of automotive studies at Daelim University.

Last year, BMW Korea launched the 1 Series hatchback, targeting younger customers.

BMW has secured the pole position in the imported market for the past few years and plans to aggressively expand its market share through the launch of more “younger” models here in the 1 Series.

The five-door hatchback is now sold in six variants in the Urban Line and Sport Line, with the price starting from 33.9 million won.

Following BMW’s introduction of a hatchback, Mercedes-Benz will also launch its A-Class for the first time here.

The firm also plans to change its brand image, usually associated with “being old,” and enhance affordability.

“Mercedes-Benz's aim is to keep growing in the Korean market. And in order to do this, we will be offering more and novel products to new customer segments,” CEO Britta Seeger said during the Seoul Motor Show when introducing the A-Class. “We want to sell our car to all generations.”

The firm will sell the vehicle in a similar price range to the B-Class, which is available at 39.8 million won and 44.5 million won.

There are also various other imported hatchbacks such as the Peugeot 208, which markets its high fuel efficiency of 21.1 kilometers per liter, and the Citroen DS3, which emphasizes its unique French style premium look.

Local brands have various lineups, too, because they strategically developed them to advance into the European market where hatchback and wagon models are much more popular than sedans.

Hyundai Motor sells the i30 and the hatchback version of the Accent compact sedan, while its sister automaker Kia Motors has hatchback variants of the Pride and K3. The K3 hatchback is going to be launched in Europe soon.

“We have a strong hatchback lineup, originally developed for the European market. So, if the segment is popular here, we can easily launch more models locally,” an official from Hyundai Motor said.

GM Korea also has hatchback variants of its compact and subcompact models including the Chevrolet Spark, the Chevrolet Aveo and the Chevrolet Cruze.