'Torres' Embraced by KG... Ssangyong's 'U100·KR10' Ready for Deployment

Electric Vehicle U100 and Korando Successor KR10 Awaiting
Interest in Whether They Will Sustain Long-Term Success Unlike Tivoli

[Asia Economy Reporter Kiho Sung] As Ssangyong Motor comes under the umbrella of KG Group, interest in the new sports utility vehicle (SUV) ‘Torres’ is increasing. Torres has set a record for the highest number of pre-orders ever, intensifying the heat of the acquisition battle. Industry insiders expect that following Torres, the electric vehicle models 'U100' (project name) and 'KR10', scheduled to be unveiled in the second half of next year, will be launched soon, and thus, unlike Tivoli, they are not expected to be just a 'flash in the pan' success.

On the 28th, the Seoul Bankruptcy Court Rehabilitation Division 1 (Presiding Judge Kyunghwan Seo, Associate Judges Dongshik Lee and Sanghoon Na) selected the KG Consortium, which was the prospective buyer before the sale announcement, as the final prospective buyer.

So far, KG Group has been engaged in a fierce acquisition battle with Ssangbangwool Group. The background to this is the upcoming launch of Torres. According to industry sources, the number of pre-orders for Torres is estimated to have exceeded 24,000 units. On the first day of pre-orders on the 13th, Torres surpassed 12,000 units, marking the first time in Ssangyong Motor’s history that pre-orders exceeded 10,000 units. This level of achievement is only seen in popular models from Hyundai and Kia in Korea. For example, the Kia Sportage had 16,078 pre-orders on its first day in 2021.

The interest in Torres’ performance is heightened due to the case of Tivoli. The Tivoli, launched by Ssangyong Motor in 2015, sold 64,000 units in its first year, ranking first in sales in the domestic small SUV market. Thanks to the Tivoli effect, Ssangyong Motor turned a profit in 2016, the following year. However, Tivoli’s successor was not released due to Ssangyong Motor’s worsening management, which was a big disappointment. Industry insiders expect that Torres will not follow the same path as Tivoli. Ssangyong Motor plans to launch the electrified model U100 and the KR10, known as the successor to the traditional Korando, in line with global trends, so a series of new car launches are scheduled.

Ssangyong Motor plans to accelerate mass production of electric vehicles by shortening development time through a partnership with BYD. In December last year, Ssangyong Motor signed a Memorandum of Understanding (MOU) for technical cooperation on battery development and production with Chinese electric vehicle and battery manufacturer BYD. The battery jointly developed with BYD is expected to be first installed in the U100.

The U100 is an electric SUV similar in size to Torres and is being developed with the goal of launching in the second half of next year. Additionally, the KR10, which inherits the traditional Korando design, is also scheduled for release in the second half of next year. Ssangyong Motor explained that the KR10 is being developed to preserve the design sketch revealed last year as much as possible. If Ssangyong Motor’s plan proceeds as intended, with the launch of the electric vehicle U100 and the KR10 emphasizing the sensibility of a traditional SUV, the success of Torres is expected to continue. Furthermore, the pickup truck Rexton Sports is showing steady sales, so if Torres’ success extends to other new models, Ssangyong Motor is expected to achieve early business normalization.

Professor Hogun Lee of Daeduk University’s Department of Automotive Engineering said, “The biggest concern for new investors in acquiring Ssangyong Motor is the uncertainty of future alternatives. However, the success of Torres is greatly helping the normalization process.”