KR Motors Enters Domestic Electric Mini Truck Market with JangAn Motors Subsidiary

[Asia Economy Reporter Hyunseok Yoo] KR Motors announced on the 27th that it has signed a strategic business partnership with Changan International Corporation (hereinafter CIC), a subsidiary of Chinese automaker Changan Automobile, to develop electric mini trucks and sell them domestically.

According to the business agreement, Changan Automobile will exclusively supply KR Motors with its electric mini truck model ‘MD201,’ upgraded to meet domestic regulations and customer needs. KR Motors will be responsible for market sales using domestic certification and existing dealerships.

Changan Automobile is the fourth largest automaker in China, recording sales of 1.5 million units in 2018 and revenue of approximately KRW 11.14 trillion. The company began producing China’s first small commercial vehicle, the 'Star,' in 1984 and has strengths in manufacturing small trucks and minivans. It plans to completely cease production of internal combustion engine vehicles by 2025, focusing on new energy vehicle business and enhancing its technological capabilities. Currently, it produces seven electric vehicle models.

The ‘MD201’ electric mini truck, which will enter the domestic market for the first time, was launched in China in July last year. It is sold to courier and logistics companies and has received strong positive feedback for its design and quality. Although a mini truck, it features a spacious cargo bed, a payload capacity of 0.95 tons, and a driving range of 230 km on a single charge. It is equipped with a lithium-ion battery that supports fast charging within one hour. KR Motors plans to satisfy demanding domestic consumers based on these competitive advantages.

A KR Motors official stated, “This business model combines Changan Automobile’s advanced technology and product competitiveness with KR Motors’ nationwide sales network. It is especially meaningful that we are launching a model targeting the niche market between 0.5 tons and 1 ton, which is in demand in the market, without significant development and investment costs.” He added, “KR Motors, which has the technology to meet Euro 5 environmental regulations with gasoline engines, will now accelerate its expansion in the electric vehicle sector beyond two-wheelers to include three-wheelers and four-wheelers.”