Domestic Carmakers Set Sights on Large SUVs
16 October, 2018
Competition for the large SUV market is heating up, with carmakers turning to large vehicles, which have become increasingly popular, in a bid to revive dwindling sales.
The market has mostly been dominated by luxury foreign brands so far, as domestic carmakers were focused on compact or midsize SUVs. Currently, there are only two domestic models in the segment -- Ssangyong's G4 Rexton and Kia's Mohave.
Hyundai plans to roll out a large SUV by the end of this year, three years after it discontinued the production of its biggest SUV, the Veracruz, due to poor sales.
Its successor, tentatively named the Palisade, is expected to be based on the HDC-2 Grandmaster concept the carmaker unveiled at the Busan International Motor Show in June this year. Once the Palisade is released, Hyundai will have a full lineup in the SUV segment along with the compact Kona, small Tucson and midsize Santa Fe.
GM Korea is planning to import the eight-seater Traverse in the first half of next year.
Upgraded versions of existing models are further intensifying the competition of the market. In August, Ssangyong launched a newly enhanced version of its G4 Rexton, while Kia released its new Mohave early this month.
Large SUVs accounted for about 2 percent of the domestic market from January to September this year, with the G4 Rexton claiming two-thirds of that share.
An industry insider said, "Demand for large SUVs used to be low, but now they are inducing customers with improved fuel efficiency and other features in a changing lifestyle where the focus is increasingly put on leisure activities."
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