KR Motors "Strong Overseas Export Performance of Chinese Subsidiary"

[Asia Economy Reporter Hyunseok Yoo] KR Motors' Chinese subsidiary Qingqi KR Motors (hereinafter China JV) announced on the 13th that it is achieving strong export performance in a total of 45 countries including Europe, Latin America, Africa, the Middle East, and Asia.

From January to April, it recorded exports of 14,531 units with export revenue of 13.7 billion KRW. The remaining contracted quantity reaches 18,000 units. Continuous export consultations are underway, and it is expected that the China JV will achieve its highest export performance within three years of operation.

The factors contributing to the increase in overseas exports include ▲expansion of sales in Europe and South America ▲strengthening competitiveness of the GV125S and QINGQI retro products ▲securing new business partners.

KR Motors' flagship export brand, the GV series, is increasing its market share mainly in Europe, competing for the lead in the 125CC class market against Japanese brands in countries such as France and Germany. By signing an agreement with a German business partner and securing a large-scale logistics center base, the company has implemented a service supplying AS parts within 24 hours, which has received great consumer response and led to expanded exports to Europe.

The QINGQI series, based on 125CC and 250CC engines, has introduced a system for assembly production tailored to the requirements of each country and is focusing on the South American market with mid-to-low priced models, maintaining continuous export momentum.

The China JV will finally launch the New GV-300S model in June. The GV-300S, first produced by the China JV in 2019, led the JV’s performance with its unique technology and quality featuring a V-twin engine. The new GV300S model will be released with a new design and upgraded specifications, accelerating not only domestic sales in China but also overseas exports.

Additionally, exports of marine engine parts, which account for 20% of the China JV’s sales, are also showing strong performance. Mercury, the world’s number one company in marine boat engine market share, imports engine-related parts from the China JV every year. The amount of orders received in 2021 was 23 billion KRW, and as of April, 101% of the previous year’s same period was achieved. Due to additional order requests from Mercury, facility expansion is underway. The company explained that the current production line is operating 24 hours at full capacity.

A China JV official stated, “To continue the export growth centered on Europe and Latin America, we plan to develop additional new models using the highly responsive same engine, launch the GV650CC model to capture the rapidly growing Chinese domestic high-displacement market which has been growing over 30% annually recently, and produce KR Motors’ electric scooters to expand exports using the domestic Chinese market and existing sales networks in Europe for the eco-friendly motorcycle business.”