'DaeChang Motors Participating in "Gunsan-type Job Model"... "Will Become a Hub for Electric Cargo Vehicle Production"'

Targeting the Small Electric Cargo Vehicle Market for Small Business Owners
Strengthening Competitiveness by Developing and Producing Batteries for Electric Vehicles
Currently Developing Ship Batteries and Autonomous Shuttle Systems

Oh Chung-gi, CEO of Daechang Motors [Photo by TMON]

[Asia Economy Reporter Kim Bo-kyung] Daechang Motors, a strong small and medium-sized enterprise in electric vehicle manufacturing, is making a comeback this year through the 'Gunsan-type Job Creation' project. Daechang Motors is investing 19 billion KRW to establish a new factory on a 50,000㎡ site in the Saemangeum Industrial Complex Section 1 and will begin producing small electric cargo vehicles. Construction will start next month and is scheduled to be completed in the first half of next year. By signing a contract for consignment production with Myeongshin, which acquired the GM Korea Gunsan plant, stable mass production has also become possible. Through the Gunsan-type Job Creation project, which involves government support funds of 350 billion KRW, it is expected that a total of about 1,700 new jobs will be created by 2024.

Oh Chung-gi, CEO of Daechang Motors, stated, "Labor, management, civic groups, and the government have come together with one heart and mind to plan the business and prepare measures for creating win-win jobs," adding, "The Saemangeum Industrial Complex is expected to grow into the largest eco-friendly electric vehicle production hub in Korea."

Daechang Motors Electric Cargo Vehicle 'Danigo Van'

Daechang Motors, located in Jincheon, Chungbuk, was established in January 2010. Initially, it gained recognition by producing ride-on electric carts for Korea Yakult and supplied 300 ultra-small cargo vehicles to the Korea Post in 2019. It has steadily built a lineup focusing on small electric cargo vehicles, a segment untouched by large corporations.

Since 2017, it has partnered with TMON to start online sales, with 300 units sold out on the first day, showing strong demand. CEO Oh said, "Not only electric vehicles but also battery modules and packs for electric vehicles are developed and produced in-house," adding, "By directly supplying batteries, which account for 40% of the price of electric vehicles, we are strengthening our competitiveness." He also mentioned, "Batteries are the essential ingredient applicable to all mobility, and recently, we are promoting the development of batteries for ships."

Daechang Motors signed a battery supply contract with Samsung Electronics for portable X-ray machines and was registered as a first-tier partner last year. Recently, it has been expanding its business areas by utilizing autonomous driving technology on various electric vehicle platforms. Earlier this year, it introduced two autonomous shuttle vehicles for the mobility-impaired at Incheon International Airport and is developing an 8-passenger autonomous shuttle.

Sung-ho Park, Head of Partnership Business at TMON (left), and Chung-gi Oh, CEO of Daechang Motors.

In March, Daechang Motors launched the multipurpose small electric cargo vehicle 'Danigo Van.' The Danigo Van can be fast-charged within an hour and can travel 206 km on a single charge. Based on Seoul city standards, with a government subsidy of 24 million KRW and various tax benefits, it can be purchased for around 10 million KRW. This year, the government's target for electric cargo vehicle distribution increased to 25,000 units, with 10% allocated to small and medium-sized enterprises, giving them a favorable position. The company is targeting the B2B market, including logistics and distribution companies and delivery agencies.

CEO Oh said, "We aim for an initial public offering (IPO) in the second half of next year and annual sales of 1 trillion KRW within three years," adding, "To reduce carbon emissions and help small business owners struggling due to COVID-19, it is necessary to increase the supply volume of electric cargo vehicles through supplementary budgets."