Foreign-owned car brands fall further behind on lack of EV commitment

Asia's Tech News Daily

Foreign-owned car brands fall further behind on lack of EV commitment

GM International President Steve Kiefer said none of the company’s 10 new electric vehicle (EV) models to be launched by 2025 will be manufactured in Korea, during his visit here in early November. Korea Times file

GM Korea, SsangYong, Renault Samsung lack diversity in EV lineups

By Yi Whan-woo

The Korean units of three foreign carmakers ― GM, SsangYong Motor and Renault Samsung ― are falling behind in the race to transition to electric vehicles (EV), after staggering in the combustion-engine competition.

Their poor performance is in contrast to the country’s two largest carmakers ― Hyundai Motor and Kia ― that accounted for 92 percent of the 2021 EV market here in the third quarter.

The polarized market trend is attributed to a lack of commitment to the EV market among the foreign brands.

Such a trend is fueling concerns that the gap may widen as Hyundai Motor Group, which owns Hyundai Motor and Kia, has been orchestrating carefully developed strategies under a vision to become the world’s third-largest player in the EV market by 2025.

“The three foreign brands have been considered second-tier players in the domestic market, and they may lose further ground considering they do not have a vision for EV, or hydrogen-powered cars, or other next growth engines,” an industry source said.

Foreign-owned car brands fall further behind on lack of EV commitment

SsangYong Motor, a debt-ridden carmaker, does not have any electric vehicle (EV) models. Korea Times file

GM Korea, SsangYong Motor and Renault Samsung sold a combined 141,237 cars between January and October in the domestic market, down 35 percent from the same period last year, according to the data by the Korean Automobile Manufacturers Association (KAMA).

By companies, Renault Samsung suffered the deepest sales drop of 40 percent year-on-year to 47,805.

SsangYong Motor’s sales retreated 36.9 percent to 47,805, and GM Korea’s dipped 26.8 percent to 49,156.

In particular, the trio suffered the worst sales slump since 1998 in the first half, with sales plunging 35.4 percent year-on-year to 88,625.

In 1998, the three sold only 73,169 vehicles in the wake of the Asian financial crisis.

The situation also remains unfavorable in the sales of electric vehicles (EVs).

From January to September, GM Korea sold 1,016 EVs and Renault Samsung sold 966 ― SsangYong Motor sold none because it does not have any EV models.

During the same period, Hyundai sold 17,209 and Kia sold 10,711, which altogether accounted for 92 percent of domestic EV sales.

The two leading carmakers’ combined performance helped Korea’s EV sales surge by more than 90 percent year-on-year, and accordingly, had the country ranked seventh in the international EV market.

The market share of EVs in Korea was 5.5 percent, which is lower than China with 9.4 percent but higher than the United States with 2.3 percent.

Foreign-owned car brands fall further behind on lack of EV commitment

Renault Samsung has two electric vehicle (EVs): Zoe, an all-electric variant of the SM3 sedan, and two-seater Twizy, with sales below 1,000 from January to October. Korea Times file

An industry source pointed to the lack of diversity in EV lineups, when asked why the foreign brands are losing in the competition.

Hyundai’s EV models vary by size and type, as seen in its mid-sized crossover utility vehicle (CUV) IONIQ5, Porter II EV truck, Kona electric SUV and Electrified G80, the first EV version from the luxury brand Genesis.

The EVs featured by Kia are the Bongo EV truck, Niro EV CUV and Soul EV subcompact CUV.

On the other hand, GM Korea only has the Bolt, the first electric version of a Chevrolet SUV or EV hatchback.

To make things worse, the recalls of LG Energy Solution batteries supplied to GM is suspending sales of Bolt here.

Renault has two models: Zoe, an all-electric variant of the SM3 sedan, and the two-seater Twizy.

“EV transition is not an option but something carmakers will have to follow inevitably in accordance with carbon neutrality goals,” a source said. “In this regard, diversifying choices for consumers is crucial but the foreign brands are not succeeding in implementing such a strategy.”

Lee Hang-goo, a senior research with the Korea Institute for Industrial Economics and Trade, speculated that foreign-owned companies here may “not only lose competence but also face a threat to survival” if they are excluded by their respective headquarters from EV manufacturing.

The possibility is in the air for GM Korea, with GM International President Steve Kiefer announcing the launch of new EV models in Korea by 2025, but none of them will be manufactured domestically.

“The 10 EVs will all be imported vehicles,” Kiefer said during his visit to Korea in early November, adding, “We are not announcing any plan to produce EV models in the country.”

The GM decision is believed to be a measure to avoid labor unrest risks, especially following a full-scale strike in 2019 that severely disrupted production and even prompted the U.S. company to consider pulling its business out of Korea.

Even so, the import strategy introduced by Kiefer is not promising, either, according to market observers.

They noted GM will have to compete against EV pioneer Tesla as well as Mercedes-Benz, BMW and other luxury import brands that are pushing to go all-electric.

As for Renault Samsung, it announced its partnership with Lynk & Co., an automotive brand formed as a joint venture between Geely and Volvo, in August to develop an eco-friendly vehicle for the Korean market.

Geely, the Chinese owner of Sweden’s Volvo, has formed a separate partnership with the France-headquartered Renault to sell hybrid vehicles in Asia.

But it remains to be seen whether the cars will be produced here.

SsangYong Motor, undergoing court receivership after its India-headquartered parent company Mahindra failed to attract an investor, saw a Korean consortium led by electric carmaker Edison Motors recommended as the preferred bidder for its acquisition.

Edison Motors is determined to turn SsangYong Motor around in three to five years and transform it into an electric vehicle-focused carmaker.

However, whether debt-ridden SsangYong Motor can successfully transform will depend on how Edison funds the billions of won required to end its court receivership and normalize the company.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


'If Boris Johnson has broken the law, he has to go', admits Javid

The health secretary has admitted that if a prime minister breaks the law, then they should leave office, as Boris Johnson's Partygate saga rumbles on. Sajid Javid told Sky News ... Read more »

Hana Horka death: Czech singer dies aged 57 after deliberately contracting Covid

Czech folk singer Hana Horka has died after intentionally catching Covid. Horka, 57, had not been vaccinated, and her son, Jan Rek, said she got infected deliberately when he and ... Read more »

Horizon Forbidden West will feature Matrix star Carrie-Anne Moss

Horizon Forbidden West will star Carrie-Anne Moss, best known for her role as Trinity in the Matrix franchise, as the voice of a new character. Developer Guerrilla Games released a ... Read more »

Interview: Usain Bolt on gaming and Virgin Media superfast Gig1 broadband “To see myself in 4k as a hologram was mind blowing"

As Virgin Media O2 celebrates its superfast Gig1 broadband going into its 15 millionth UK home, it showed us just how speedy it is with high-quality PORTL hologram technology. We ... Read more »

‘Horizon Forbidden West' story trailer reveals Regalla's connection with Sylens and a mysterious character named Tilda

From the “Horizon Forbidden West” story trailer | Photo credit: Guerilla Games via PlayStation / YouTube screenshot With only a few weeks left before the release of “Horizon Forbidden West,” ... Read more »

Is this research paper too long to read? AI can summarize it for you

© Gorodenkoff / Shutterstock What if an AI-powered software could condense a study into a concise, single-sentence summary? Most students would attest that they spend countless hours reading research papers. ... Read more »

Wizit to raise 2.5 bln won via stock sale

SEOUL, Jan. 20 (Yonhap) — Wizit Co.on Thursday announced that it will sell stocks to raise 2.5 billion won (US$2.1 million). The proceeds from the stock offering will be used ... Read more »

‘The Daily Show' Brutally Roasts Anti-Vaxxer Novak Djokovic

Comedy Central The Daily Show returned from a long hiatus on Tuesday and among the stories host Trevor Noah decided to catch up on was the drawn-out saga of tennis ... Read more »

Snapchat says Quick Add update will make it harder for strangers to find profiles of users under 18 years old

Photo credit: Souvik Banerjee / Unsplash Snapchat released another Safety & Impact blog post on Tuesday, announcing an update to the social media app's Quick Add feature. The company said it had added ... Read more »

‘Battlefield 2042' Update 3.2 goes live this week with Portal XP adjustments, Scoreboard improvements to follow

From the Battlefield Portal gameplay trailer | Photo credit: DICE via Battlefield / YouTube screenshot DICE will introduce adjustments to the way “Battlefield 2042” players gain Portal XP in Update ... Read more »

‘Pokémon Legends: Arceus' leaks reveal the game's entire Pokédex more than a week ahead of launch

From a trailer of “Pokémon Legends: Arceus” | Photo credit: The Official Pokémon YouTube channel “Pokémon Legends: Arceus” is currently trending on various online platforms, but not for the reason ... Read more »

Raducanu vs Kovinic live stream: how to watch the 2nd round Australian Open tennis 2022

Emma Raducanu faces her Australian Open second round opponent, Danka Kovinic, this morning. Such is grand slam tournament tennis that even a world no.98 could well be banana skin for ... Read more »

Kyrgios vs Medvedev live stream: how to watch online, Australian Open tennis 2022, second round

World No.2 Daniil Medvedev may be the favourite for the Norman Brookes Challenge Cup, but he’s been handed the second round draw from hell, with the Melbourne crowd eating out ... Read more »

MacBook Pro 2022: Apple to reportedly launch a new 14-inch model with the M2 chip in late 2022

Apple MacBook Pro 2021 | Photo credit: TheRegisti / Unsplash A new MacBook Pro is reportedly one of the Mac devices Apple plans to launch later this year. And it is expected to ... Read more »

IT predictions for 2022 and beyond From consumers fooling algorithms to NFTs and 'neuromining', Gartner Inc sees trends that will keep businesses on their toes

Three key aspects stand out among the lessons business and IT leaders have learned during the ongoing disruption and uncertainty — the push toward human-centricity, the race to resilience and ... Read more »

‘Elden Ring' leak: Gameplay videos showcase creepy NPCs, including Melina and a giant crab with human limbs

From the “Elden Ring” gameplay preview | Photo credit: BANDAI NAMCO Europe / YouTube screenshot There is only a little more than a month left before “Elden Ring” officially arrives, ... Read more »

Over one-third of S. Koreans paid subscribers to OTT platforms last year

SEOUL, Jan. 20 (Yonhap) — Over 34 percent of South Koreans were paid subscribers to over-the-top (OTT) media, or video streaming services, a survey showed Thursday. Paid subscribers to OTTs ... Read more »

Cisco 240AC Wi-Fi 5 access point review

Two-minute review With the world becoming more connected due to the pandemic, having a robust home and office Internet infrastructure has turned out to be a necessity. A piece of ... Read more »

How to watch Women's Ashes 2022: schedule, format, live stream from anywhere

After the recent ignominious defeat for the men’s team Down Under, Captain Heather Knight and her England team will be hoping to restore some pride as they take on the ... Read more »

Eased regulations eyed to increase investment in fintech industry: regulator

SEOUL, Jan. 20 (Yonhap) — The head of South Korea’s financial regulator said Thursday he is seeking to ease restrictions on financial companies’ investment in fintech firms as part of ... Read more »

Health department warning over vaccine mandate for NHS staff in England

Photograph: Peter Byrne/PA Exclusive: Leaked document says data on jabs’ effectiveness against Omicron weakens case for compulsory vaccination Ministers have been issued with a stark warning over mandatory Covid vaccines ... Read more »

Gamekeeper who ran royal pheasant shoots at centre of police probe after man killed in bridge collapse

A wooden bridge collapsed, killing one worker and leaving two others seriously injured – SWNS/SWNS A gamekeeper who organised pheasant shoots for the Royal Family is at the centre of ... Read more »

Facebook's unglamorous mistakes

In a Facebook group for gardeners, the social network’s automated systems sometimes flagged discussions about a common backyard tool as inappropriate sexual talk. Facebook froze the accounts of some Native ... Read more »

Boris Johnson can ‘wriggle out' of resignation even if MPs misled over No 10 party, experts say

Boris Johnson has ways to “wriggle” out of the ‘partygate’ crisis even if the inquiry suggests the Commons was misled over the No 10 party, constitutional experts say. The prime ... Read more »

Dreaming of a new conservatory? Climate change building rules could shatter that middle-class aspiration

conservatory – xavierarnau As a middle-class staple coveted even by members of the Royal family, the conservatory has been an object of aspiration for the British homeowner for decades. But ... Read more »

Murray vs Daniel live stream: how to watch online, Australian Open 2022, second round

Five-time Aussie Open finalist Andy Murray has won his first AO match in five years, and he now comes face to face with qualifier Taro Daniel in the second round. ... Read more »

How to look your best on a video call

As we approach the two-year mark for this pandemic, it is very clear that everyone could use a refresher course in looking their best on camera. Nice lighting and perfectly ... Read more »

A lone undersea internet cable connected Tonga to the world — a volcanic eruption broke it

© Photo by Maxar via Getty Images The Hunga Tonga-Hunga Ha’apai volcano(pictured here on January 6th) erupted on January 14th. The effects of a colossal volcanic eruption in the Pacific ... Read more »

Instagram steals the thunder from TikTok to become the most downloaded app in the world

© Wachiwit / GettyImages TikTok remains the most downloaded app in the United States on the App Store and Google Play in the last quarter of 2021. At the end ... Read more »

What is an iSIM, the SIM directly integrated into the smartphone's processor?

© Courtesy of Vodafone Qualcomm, Vodafone and Thales introduce the iSIM concept. After the eSIM, the time of the iSIM is on the horizon. In collaboration with Thales and Vodafone, ... Read more »

Verizon’s faster C-band 5G is live and off to a promising start

© Illustration by Alex Castro / The Verge Amid an ongoing tussle with the FAA and airline industry, Verizon today flipped the switch on its mid-band 5G deployment, which uses ... Read more »

White House says 400 million free N95 masks will be available at US pharmacies

© Kent Nishimura / Los Angeles Times N95 face masks offer better protection against COVID than cloth ones, the CDC says The US government will make 400 million N95 face ... Read more »

SpaceX's Starlink satellites leave streaks in asteroid-hunting telescope's images

© Provided by Space A streak from a Starlink satellite appears in this image of the Andromeda galaxy, taken by the Zwicky Transient Facility, or ZTF, during twilight on May ... Read more »

Instagram is testing paid subscriptions with a small group of creators

© Image: Instagram US Instagram users will soon be able to subscribe to a small number of creators and influencers to access exclusive content and features. In a blog post, ... Read more »

Snapchat to limit friend suggestions for teenagers to prevent contact with strangers

© Illustration by Alex Castro / The Verge Snapchat is implementing a new safety feature that limits the friend suggestions teenagers see in the app (via 9to5Mac). Kids aged 13 ... Read more »

YouTube plans to cease original productions

© Kirill KUDRYAVTSEV / AFP YouTube has announced the phasing out of some of its original content. YouTube plans to stop its original content… or at least most of it! ... Read more »

Red Cross hack exposes data on 515,000 vulnerable people, agency suspects criminals seeking profit

The International Committee of the Red Cross, which is best known for helping war victims, says hackers broke into servers hosting its data and gained access to personal, confidential information ... Read more »

Kakao names Nam Koong-whon as new CEO

By Kim Han-joo SEOUL, Jan. 20 (Yonhap) — Kakao Corp., the operator of South Korea’s top mobile messenger KakaoTalk, said Thursday it has named Nam Koong-whon as its new CEO ... Read more »

Tory MP Christian Wakeford defects to Labour party amid 'Partygate'

Tory MP Christian Wakeford has defected to the Labour party. (UK Parliament) Tory MP Christian Wakeford has defected to the Labour party amid a growing row over Boris Johnson's confession ... Read more »

Cisco CEO says US and China must ‘find way to coexist' to help the global economy

As President Joe Biden devises a new strategy for dealing with China, a top technology CEO is recommending dialling down the tension. Cisco Systems Inc chief executive officer Chuck Robbins, ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic