Mercedes-Benz, Renault hit for abandoning Busan Motor Show

People visit the 2018 Busan International Motor Show in June 2018. Yonhap

By Kim Hyun-bin

Mercedes-Benz and Renault Motors have been taking some flak for their respective decisions not to take part in the 2022 Busan International Motor Show (BIMOS), as they appear to be prioritizing finances over participation as members of the nation's automotive ecosystem, according to BIMOS organizers and industry officials, Monday.

They say the two companies' withdrawals could have an impact on not just the event, but the entire domestic industry ecosystem, as more foreign and domestic carmakers could also withdraw from participation in future events.

Mercedes-Benz is the top-selling foreign brand in the country and Renault's Korean operation is headquartered in Busan.

Critics have been calling not only on domestic carmakers but also on the imported car industry ― which has taken up 30 percent of the local market share ― to pay more attention to domestic motor events.

“Carmakers are now turning to online and large events such as the Consumer Electronics Show (CES) and other large motor shows, but are passive about participating in domestic expos,” a BIMOS organizing committee official said. “So we are trying to change the expo from a traditional exhibition to visitors getting more hands-on experience with the vehicles to be more appealing to the public.”

BIMOS has been finding it difficult to attract carmakers, as trends have been moving away from hardware and inching towards electrification and software in recent years.

BIMOS is scheduled to be held in July for the first time in four years, and so far Hyundai Motor Group's Hyundai Motor Company, Kia Corp. and Genesis, as well as BMW Group's Mini and Rolls Royce have announced their intent to take part.

BIMOS is considered one of Korea's representative motor shows, along with the Seoul International Motor Show, which changed its name last year to the Seoul Mobility Show.

The 2020 event could not be held due to COVID-19, but before that, almost 20 domestic and foreign carmakers took part. Previously held in 2018 as the Busan Motor Show, a total of 19 brands, including eight domestic cars and 11 imported cars, had booths. However, this year, the number of participating brands has shrunk to six, less than one-third of the number from four years ago.

“We are in a different situation than other firms withdrawing their participation as we are facing financial difficulties,” a Renault official said. “We will try our best to attend the next event.”

Mercedes-Benz says the Busan Motor Show doesn't fit the concept and direction of the company, which was a key reason for not joining.

“We tend to take part in events that fit our concept and direction. Last year, we took part in the Seoul International Motor Show and revealed our electrification strategy,” a Mercedes-Benz Korea official said. “However, to make up for our absence, we are scheduled to host several CSR activities and are planning other events in Busan.”

Carmakers have to spend millions of won or sometimes billions of won depending on the size of the booth to promote their products. Some argue that domestic motor shows need to become more attractive platforms to promote the participating brands better.

“The automotive industry is undergoing a paradigm shift, both here and abroad, with changes in the exhibition and marketing fields also accelerating due to the COVID-19 pandemic, and the motor show is also going through a transition period,” the Korea Automobile Importers & Distributors Association said. “As the motor show is still the 'flower' of the car industry, it is an important place where brands and consumers meet, so both the show's organizers and the brands are seeking change.”