This photo provided by KG Mobility shows the company’s new Actyon SUV model. (Image courtesy of Yonhap)
SEOUL, Jul. 23 (Korea Bizwire) — KG Mobility Corp. and Renault Korea Motors Co. are gearing up to release ambitious new midsize sport utility vehicle (SUV) models this year to tackle the popular family leisure car market segment dominated by local industry leaders Hyundai Motor Co. and Kia Corp.
KG Mobility, formerly known as Ssangyong Motor, last week announced the upcoming release of the new coupe-type SUV Actyon and started receiving preorders. The name is inherited from the discontinued Actyon brand during the company’s Ssangyong Motor period that was first introduced in 2005.
The newly revived Actyon, developed under the project name J120, is a midsize SUV that combines the practicality of an SUV with the stylishness of a coupe.
The company said the model features a popular yet unique design that appropriately blends elements from KG Mobility’s Torres SUV line and the previous Actyon brand.
The initial response of Actyon has been unprecedented for the company, having received preorders for over 16,000 units on the first day alone.
This photo provided by Renault Korea shows the company’s new Grand Koleos SUV model. (Image courtesy of Yonhap)
A KG Mobility official said it was highly unusual for over 16,000 preorders to be made based solely on the exterior design, without any details on the vehicle’s price or specifications being disclosed.
Renault Korea, the South Korean unit of French automotive group Renault S.A., is also moving to capitalize on the high demand for family SUVs in the country with the new Grand Koleos.
Renault Korea’s new D-segment hybrid SUV is the company’s first new model to be introduced since the XM3 in 2020.
The vehicle features a family-friendly 4,780-millimeter body length and a 2,820-millimeter wheelbase, offering generous second-row space and comfortable leg room.
Preorders for the new Grand Koleos have been available since its global debut at the 2024 Busan International Mobility Show last month. Renault said it has received preorders for over 8,000 units as of July 12.
Renault is betting big on the Grand Koleos, as the company aims to overcome its prolonged sales slump in South Korea with the new release.
The company has remained in fifth, and last, place in terms of market share among automakers with domestic manufacturing bases since April 2022. Between January and May of this year, its market share stood at 1.8 percent.
Hyundai Motor’s Santa Fe and Kia’s Sorento currently occupy more than 60 percent of the domestic midsize SUV market.
According to statistics from automotive market tracker CarIsYou, out of the total 221,377 midsize SUV units sold domestically last year, the Santa Fe and Sorento accounted for 133,972 units. KG Mobility’s Torres sold 38,210 units while Renault Korea’s QM6 sold 11,146 units in 2023.
Industry observers suggest that the two trailing automakers need to adopt aggressive sales strategies to translate their preorders into actual sales, as the Actyon and the Grand Koleos may struggle to compete with rivals from Hyundai and Kia despite improved designs and value propositions.
A market observer also noted that consumers will “comprehensively consider brand reliability, customer service quality and vehicle space utilization” in addition to design and competitive prices when choosing a midsize SUV to be used as a family car.
(Yonhap)
