Onslaught of imported hybrid vehicles

This is the final article in a three-part series of yearly reviews of Korean industries ― info-tech is covered first followed by the finance and automotive industries. ― ED.

By Jhoo Dong-chan

The number of registered imported hybrid vehicles reached 20,000 in Korea this year thanks to surging popularity of eco-friendly vehicles.

Despite the market’s rapid expansion, however, experts say domestic carmakers have not fully followed the transition, falling behind the global trend for the future of the automotive industry.

According to the Korea Automobile Importers and Distributors Association, Friday, foreign imported auto brands sold 20,644 hybrid vehicles during the January-to-November period. The figure includes plug-in hybrid electric vehicles.

The figure was just 14,104 last year, but jumped by 46.4 percent this year. Hybrid vehicles also accounted for 9.7 percent in the nation’s imported car market in the 11-month period, up from last year’s figure of 7.2 percent.

The nation’s two top carmakers, Hyundai Motor and Kia Motors, sold 25,539 and 8,026 hybrid vehicles in the period respectively, managing to outnumber the sales of imported hybrid vehicles.

Upcoming imported hybrid models

But experts expect that things may change next year as imported brands are set to introduce a series of new hybrid vehicles soon to further expand its presence in the market.

Japanese premium carmaker Lexus, which sold 10,525 hybrid vehicles between January and November this year to occupy 51 percent share in the imported hybrid vehicle market, has recently brought about the all-new LS hybrid sedan here.

The launch of the fifth-generation LS hybrid also follows the Lexus NX300h SUV, another popular hybrid vehicle Lexus brought to market in November.

Swedish carmaker Volvo also started to market the XC60 PHEV earlier than its scheduled plan last month to take the upper hand in the upcoming competition in eco-friendly car market.

The nation’s No. 1 imported auto brand Mercedes-Benz said it will start selling the popular GLC SUV’s PHEV version earlier next year.

“Domestic carmakers are lagging behind the global trend,” Daelim University Automotive Engineering Professor Kim Pil-soo said.

“I believe Korea is about 80 percent prepared for the current trend in future vehicle markets compared to advanced countries in automobile. The market is ready, consumers are ready, and the government is investing more and more resources for the new market. Hyundai and Kia have recently announced their plan to expand the eco-friendly lineup into 38 models by 2025. I think the movement is somewhat late. They should’ve done it four or five years earlier than this.”

Industry insiders agreed.

“The hybrid vehicle market will sustain for more than five years to bridge the gap between internal combustion-engine vehicle and electric cars. The global market share of hybrid vehicles is expected to expand around 20 percent soon,” a GM Korea official said.

“Still, the market for hybrid and electric cars is still relatively small here. But, it won’t stay small for long. Domestic makers should more preemptively move to cope with the global trend.”

Domestic carmakers’ moves

Hyundai Motor and Kia Motors said during a recent seminar that they have established a plan to develop 38 eco-friendly car models by 2025. They currently have 14 such models in their lineup.

“Hyundai Motor Group will have various eco-friendly vehicles such as fuel-cell, plug-in hybrid, and hybrid vehicles as well as battery electric vehicles to meet future demand,” Hyundai Motor Senior Vice President Lee Ki-sang said during the seminar.

The nation’s third-largest carmaker GM Korea said it will transform its sales portfolio including more electric cars.

Renault Samsung also plans to embark on sales of the all-new SM3 Z.E. EV next year. It said the electric vehicle travels 213 kilometers when fully charged.

Ssangyong Motor is also expected to join the race in eco-friendly vehicle.

“Ssangyong Motor is developing its first electric cars. The model is being developed from the popular Tivoli SUV architecture.”