Each period has a keyword that can represent that period. Then, what are the keywords of the current automobile market? It is the norm that the definition of the times is generally possible only after the times have passed, so some readers may find it somewhat unfamiliar to start writing like this. Nevertheless, if you dare to pick a keyword that defines the current automobile market at this point, it is probably an SUV.
In the recent automobile market, SUVs, especially large SUVs, are experiencing a boom. Imported car makers who caught this trend recently revealed their plans to launch a super large SUV in Korea. But here, a question arises. How will the entry of super-sized SUVs in Korea affect Korea? Today’s AutoPost Issue Plus takes a step further into the story of a large SUV in the domestic automobile market.
Written Choong Lee’s Editor
The current SUV market is
Is growing rapidly
Recently, the hottest car in the domestic automobile market is the SUV. As consumers who prefer SUVs gradually increase, the sales volume of SUVs in the automobile market has increased sharply. In fact, SUVs accounted for 45.5% of cars sold until December this year, an increase of about 8% compared to 2018.
Industry officials and experts have suggested various causes for this phenomenon. The recent booming car craze and the fact that the location of family cars in minivans is turning into SUVs are mentioned as reasons for the preference for SUVs. However, before these causes occurred, there is a movement that was captured in the domestic SUV market. It is the response of domestic consumers to the large SUV.
Especially, for large SUVs
Domestic consumer demand
Increased overwhelmingly
Large SUVs are at the center of the SUV preference phenomenon in the domestic automobile market. In 2018 alone, large SUVs accounted for only 11% of the SUV market. The preferred model was the G4 Rexton, which sold 16,674 units, followed by Mojave 7,837 units. However, in December 2018, Hyundai Motor’s new flagship large SUV Palisade appeared on the market, and at the same time, the era of large SUVs began.
The sales volume of large SUVs has risen vertically. Since its launch, Palisade has shown sensational popularity, with 52,299 units sold in 2019 alone. In addition, the G4 Rexton and Mojave were also 12,879 units and 7,252 units, respectively, which decreased slightly compared to the average year, but showed good performance without involvement in large sales volume. The proportion of large SUVs among all SUVs was also 17.8%, an increase of 6.8% compared to 2018.
The big SUV craze that hit the market intensified in 2020. The sales volume of Palisade rather increased compared to last year, recording a total of 58,822 units. In addition, sales of G4 Rexton declined to 8,626 units, but Mojave’s sales volume increased significantly, with a total of 18,330 units sold through a facelift. Genesis launched the brand’s first SUV model, the GV80, and recorded a high sales volume of 3,745 units despite the high price.
A total of 65291 SUVs were sold until December this year, of which 1574,441 large SUVs were sold. In terms of market share, it is 24.2%, up 13.2% compared to 2018. The domestic car market confirmed the demand of domestic consumers for large SUVs through the sales volume of large SUVs that showed a steep rise after the appearance of Palisade.
Imported car manufacturers
I caught this flow
Meanwhile, it was not only domestic manufacturers that caught the movement of the domestic automobile market. Imported car makers who captured the trends of the domestic market such as Chevrolet, Ford, Lincoln, and Cadillac began to move. Although there were requests from existing domestic consumers, they announced plans to introduce super-sized SUVs and pickup trucks that had been delayed for domestic launch due to the characteristics of the market next year.
It is believed that through this strategy, a plan to face the demand of domestic consumers for large SUVs was established. However, it is said that consumers are showing sharply divided reactions to the entry of super-sized SUVs into the domestic market. What is the reason?
Next year, the domestic automobile market
A super large SUV from North America
It will be released in large numbers
Early next year, imported manufacturers announced plans to launch a super-sized SUV in Korea. Ford announced that it will launch the new Ford Explorer Platinum, the top model of the flagship large SUV Explorer, and the New Ford Expedition, which boasts the largest body in the brand, in Korea next year. In addition, pickup truck models such as the New Ford Ranger Wild Track and Range Raptor will also be released.
Lincoln also announced plans to launch the brand’s largest SUV, Navigator in Korea. Chevrolet also joined. Last year, Chevrolet’s full-size SUV, Tahoe, which burned in the hearts of fathers since its first appearance at the Seoul Motor Show, was also considering launching in the domestic market. In 2017, Cadillac, which had already confirmed the possibility of the domestic market, also announced plans to re-establish its position with the fifth-generation Escalade.
Super large SUV
Affect the Korean automobile society
What are the positive effects?
In fact, unlike North America and Australia, which are regarded as the main stage of SUVs and pickup trucks, Korea is difficult to operate vehicles with large bodies because the land itself is narrow. Since the market itself was not compatible with the super-sized SUV, there were many consumers who wanted to feel the magnificent body and powerful performance, but they had to swallow up their regrets.
However, due to the recent increase in demand for large SUVs, it is finally possible to meet super large SUVs in Korea. This is the result of consumers who have swallowed up regret about super-sized SUVs joining the large SUV demand group, so it can be said that their efforts have also contributed to the advancement of super-sized SUVs in the domestic market.
In any case, this is likely to alleviate a little bit of the unification of options, which was considered a chronic problem in the domestic automobile market. In addition, the super-sized SUV to be released next year is expected to face more active market competition as it will face up with Palisade and GV80, which currently have a total market share of 54% in the large market.
The emergence of new competitors who will threaten their overwhelming share will naturally affect the market strategies of existing manufacturers. In addition, if the super-sized SUVs of imported car makers achieve remarkable results in the market, domestic manufacturers will have no choice but to jump into the super-sized SUVs market. In this context, maybe in the near future we will be able to meet a super-sized SUV from Korea.
Enlargement of SUVs in Korea
There are also obvious drawbacks
However, it is not possible to present only positive outlooks for the entry of super-sized SUVs into the domestic market. It is a problem that any Korean driver can relate to, because of the daily parking difficulties. Even if you wander around the same seat in search of an empty seat and find an empty seat, it is true that a sigh comes out when you see the Carnival and Palisades parked on both sides.
To add to the editorial, I currently own a light car, and I actually parked it between the Palisades and the new Carnival. It is true that the seats were quite cramped even though the car body was small, and in order to avoid Mooncock, I had to get in and out of the car by crumpling.
Even now, this is the situation, but if a super-sized SUV with a car body larger than the Carnival and Palisade is released in Korea, the problem of parking will inevitably become severe. Moreover, contact accidents may increase due to the difficulty of determining the distance between cars due to the large body, and driving stress may increase due to limited visibility when encountering a super-sized SUV on the road.
Not only this. The prices of super-sized SUVs are relatively higher than that of general vehicles, and as their ratio increases, there is a possibility that the overall car price will level upward. Targeting domestic consumers who already prefer large vehicles, there are a number of cases where the vehicle body is greatly increased compared to its class and the price is raised. For this reason, there are some negative views that the entry of super-sized SUVs into Korea may lead to an overall increase in car prices.
Will it benefit or poison
I have to watch
First of all, the welcome comes first.
The market always responds to demand. This is the most fundamentally accepted market order. It can be said that imported car makers that declared the launch of super-sized SUVs in Korea also moved according to this market order. The current address of the domestic automobile market can be said to be a malformed structure in which one manufacturer has a market share of 80% of the total market.
For this reason, the problems of options, quality and price, which are becoming narrower, have been a chronic disease that has been mentioned for a long time. Is it because of this situation? Despite concerns, the news of the launch of an imported brand’s super-sized SUV is ahead. This article concludes with the hope that they will stimulate competition in the domestic automobile market and contribute to revitalization of the market and present various options to consumers. It was Auto Post Issue Plus.
[email protected]