SUV Sprint... Overseas Strategic Products Also Unveiled One After Another

Hyundai Motor Company Launches Strategic SUVs One After Another Including Europe Bayon and India Alcazar

[Asia Economy Reporter Yu Je-hoon] The rapid growth of sport utility vehicles (SUVs) continues in major markets worldwide, including South Korea. Domestic automakers are also strengthening their responses by consecutively launching strategic vehicles tailored to each region.

According to the industry on the 5th, Hyundai Motor and Kia sold 65,141 SUV models in the U.S. market last month, a 1.5% increase compared to the previous year. Although total sales last month decreased by 7.5% due to fewer business days and a severe cold wave hitting the U.S., SUV sales maintained steady growth despite these conditions.

This trend is not limited to the U.S. Hyundai’s domestic leisure vehicle (RV) sales last month reached 15,628 units, approximately a 60% increase year-on-year. Even considering the base effect from COVID-19, this growth rate is significantly higher than the 15% increase in general passenger car sales. Last year, the share of RV models in total domestic sales rose to 52.3%.

This SUV surge is interpreted as a global automotive consumption trend shifting from sedans, wagons, and coupes to SUVs. The drawbacks traditionally associated with SUVs?such as noise, vibration, and ride comfort?have been greatly improved, and numerous convenience features have been added, attracting consumer interest toward easier-to-drive SUVs.

Professor Lee Ho-geun of Daeduk College explained, "Since the early 2000s, automakers have improved the product quality of SUVs, which are highly profitable, significantly enhancing noise, vibration, ride comfort, and fuel efficiency, while general passenger models have seen no special changes. Coupled with the ease of driving, especially after COVID-19, the demand for car camping and similar activities has expanded, establishing SUVs as a trend."

As SUV popularity continues, overseas luxury car brands are also launching SUV models one after another. Mercedes-Maybach recently released 'The New Mercedes-Maybach GLS,' the brand’s first SUV model, and Rolls-Royce entered the SUV market in 2018 with its first SUV model, the Cullinan.

Domestic automakers are actively targeting overseas SUV markets as well. Kia’s Telluride, a mid-large SUV model exclusive to the North American region, maintained its popularity last month with an average inventory turnover rate of 12 days, even two years after its launch. Additionally, Hyundai recently introduced the Bayon, a small crossover utility vehicle (CUV), to the European market and plans to target the Indian market with the Alcazar, a 7-seater SUV based on the Creta.