SUV Popularity Remains Strong in the New Year... The Run Continues This Year as Well

Genesis 'GV80'

[Asia Economy Reporter Kiho Sung] Sport Utility Vehicles (SUVs) continue to race ahead as the new year begins. Despite the domestic automobile market contracting last year, SUVs recorded a growth rate exceeding 10%. Domestic automakers are also launching SUVs as their first new models of the year, with around 10 new models scheduled for release this year, indicating that this popularity is likely to continue for the time being.

According to the Korea Automobile Manufacturers Association on the 12th, last year, the domestic sales volume of SUVs by five domestic automakers reached 575,662 units. This is a record high, marking a 10.7% increase from the previous year (519,883 units). In contrast, the total domestic vehicle sales volume was 1,533,166 units, a 0.8% decrease compared to the previous year. The SUV share accounts for 44.5%. This means that more than 4 out of every 10 cars sold last year were SUVs.

Riding on the popularity of SUVs, domestic automakers are focusing on expanding their lineups and are expected to release around 10 models this year alone. The first to start is Hyundai Motor Company. Hyundai will officially launch the Genesis GV80 with a new car presentation on the 15th. The presentation will reveal the actual vehicle along with design, product, and marketing strategies.

The GV80 is the first SUV from Hyundai’s luxury brand Genesis and is a rear-wheel-drive-based large SUV. The GV80 was first introduced as a concept car in New York in 2017, and the pre-released design shows that Genesis’s unique 'G-Matrix' is applied throughout the interior and exterior. Technologically, it is equipped with AI-based intelligent cruise control and active road noise reduction technology, competing with luxury SUVs from the German Big Three. Industry insiders expect the GV80’s starting price to be around 60 million KRW, though the price is likely to be adjusted until just before the official launch.

Korea GM 'Trailblazer'

In the same week, Korea GM will unveil the Trailblazer over two days, the 16th and 17th. The Trailblazer is produced at the Bupyeong plant in Incheon and is also exported. The size of the Trailblazer is larger than the small SUV Chevrolet Trax but smaller than the Equinox, and it is expected to compete with models like the Tucson. It is rumored to be launched with advanced features, a high-efficiency powertrain, and competitive pricing.

Other various models are also preparing for release within this year. Hyundai plans a facelifted Santa Fe in the first half of the year, and a completely redesigned Tucson and facelifted Kona in the second half. Kia Motors intends to continue its reputation as an SUV powerhouse with a completely redesigned Sorento in the first half and a completely redesigned Sportage in the second half.

Renault Samsung, struggling with frequent strikes, is also seeking a breakthrough with SUVs. The coupe-style SUV 'XM3' will be launched for the first time in the first quarter, and a complete redesign of the QM3 is also scheduled for the first half.

An industry insider said, "The popularity of SUVs is steadily rising, and all automakers are focusing on this trend," adding, "Starting with the GV80 this year, new models and updates to popular models are planned, so the SUV market’s growth momentum is expected to continue."