Hyundai Motor is set to import Sonata taxis from China following a strong reaction from the taxi industry when it announced the discontinuation of domestic production for the mid-size taxi vehicle. (Image courtesy of Hyundai Motor Co.)
ULSAN, Dec. 14 (Korea Bizwire) – Hyundai Motor is set to import Sonata taxis from China following a strong reaction from the taxi industry when it announced the discontinuation of domestic production for the mid-size taxi vehicle.
The decision to cease production of the seventh-generation LF Sonata for taxis was made in July of this year. Launched in 2014, the seventh-generation Sonata underwent a partial facelift in 2017 before being discontinued two years later. Despite this, the taxi model continued production, facing challenges such as a shortage of old parts, leading to its eventual discontinuation due to viability issues.
The shift away from Sonata taxi production was driven by Hyundai’s focus on electric vehicles over liquefied petroleum gas (LPG) vehicles. The Sonata taxi was originally manufactured at Hyundai’s Asan plant, but profitability concerns led to its discontinuation in July of this year.
This decision prompted a strong reaction from the taxi industry, which demanded the release of a successor to the Sonata Taxi. The discontinuation of the Sonata LPG taxi model, the only medium-sized internal combustion engine taxi model in Korea, was seen as a threat to small and individual taxi operators, especially with a significant decrease in taxi passengers amid the ongoing economic downturn.
Responding to the domestic taxi industry’s need for medium-sized vehicles, Hyundai decided to import the Sonata Taxi (DN8 model) from its Beijing plant in China for sale in Korea. (Image courtesy of Hyundai Motor Co.)
The absence of the Sonata Taxi, the sole mid-sized LPG model in Korea, forced taxi operators to opt for larger vehicles, resulting in increased purchase costs. The Grandeur Taxi, for instance, is approximately 15 million won more expensive than the Sonata Taxi.
Responding to the domestic taxi industry’s need for medium-sized vehicles, Hyundai decided to import the Sonata Taxi (DN8 model) from its Beijing plant in China for sale in Korea.
A Hyundai representative explained, “As the demand for eco-friendly vehicles in the domestic market continues to grow and the variety of vehicle types is increasing, the production capacity of the domestic plant is saturated. After reviewing the global supply chain, we decided that the Beijing plant is the optimal location for sustainable production.”
However, unions are opposing the reimportation of taxis, arguing that it violates their collective bargaining agreement. The agreement stipulates that finished vehicles and parts produced in domestic factories are not to be imported from factories overseas.
Hyundai contends that since the domestic Sonata taxi has already been discontinued, importing vehicles from China does not violate the collective bargaining agreement, and will not affect employment at Korean factories.
Kevin Lee (kevinlee@koreabizwire.com)
