Slowed Growth of LPG Vehicles, Will the Avante Pull Them Up Again?

[Asia Economy Reporter Kiho Sung] The growth trend of LPG vehicles, which saw a net increase in registrations for the first time in 10 years last month, is showing signs of slowing down again. The overall contraction of the automobile market due to the novel coronavirus infection (COVID-19) is the cause. The industry is placing its hopes on the LPG model of the best-selling car 'All New Avante,' for which pre-orders begin on the 25th of this month.

According to the Ministry of Land, Infrastructure and Transport on the 28th, the number of LPG registrations in February totaled 2,020,686, which is more than 3,000 fewer than in January (2,021,720). After a net increase of 1,215 vehicles in January compared to December of the previous year (2,021,720), marking the first rise in registrations in 10 years since November 2010, the number has returned to a declining trend.

LPG vehicles became available for purchase by the general public after the government lifted related regulations in March last year. According to the Ministry of Land, Infrastructure and Transport and the Korea LPG Association, the average monthly sales of LPG vehicles sold from April to December last year, after the deregulation, was 12,022 units, which is a 46% increase compared to the average monthly sales of 8,229 units in the first quarter of last year before the regulation was lifted.

The sales rates of major LPG vehicles are also not bad. Hyundai Motor Company's Sonata and Grandeur LPG models sold 1,556 and 2,969 units respectively from January to February. The only SUV, QM6, sold 4,412 units during the same period. However, the number of LPG vehicle models is still insufficient. Currently, there are 11 LPG model vehicles on sale (excluding the discontinued 2019 Avante), of which only five are sedans. There is only one sports utility vehicle (SUV), which has recently been gaining attention, and there are no popular compact cars among customers.

For this reason, the industry is showing interest in the newly released All New Avante. The new Avante, which is a complete redesign for the first time in five years since 2015, offers an LPG model equipped with a 1600cc LPi engine alongside the gasoline engine. The 1.6 hybrid model and 1.6 T N Line will be added later.

Since its first launch in 1990, the Avante has sold a total of 13.8 million units domestically and internationally, making it a best-selling car. It is also the only LPG model among the popular compact cars favored by customers.

An industry official said, "Although regulations were lifted last year allowing the general public to purchase LPG vehicles, it was difficult to strongly appeal to the popular Avante as the new model release was imminent," adding, "With the release of the Avante this time, it is expected to bring vitality to the LPG market."