April 20, 2024

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[THE INVESTOR] Chinese state-owned automaker Dongfeng Motor is set to make a foray into the Korean market, by launching a light-duty pickup truck first. 

Dongfeng, one of China’s big four automakers, has applied for the certification of emissions and noise level tests for its 1-ton truck with the National Institute of Environment Research, under the Ministry of Environment, according to media reports on Feb. 1. 

Dongfeng Motor`s official website

Once the automaker gets approval, it can begin selling the cars in the country. 

Industry watchers expect the vehicles will hit the roads by end of this year, after the automaker sets up its sales and service network in the country. 

The entry of Dongfeng’s 1-ton truck is expected to challenge South Korea’s largest automaker Hyundai Motor’s Porter truck, which has long dominated the lightweight truck segment in the country. Porter sold 96,950 units in Korea last year to become a best-selling vehicle. 

The latest Porter II is priced from 15.3 million won (US$13,217) to 18.1 million won. Considering Chinese cars are priced 20-30 percent cheaper than their Korean counterparts, the price of Dongfeng’s truck is expected to hover around 10 million won, targeting price-sensitive commercial drivers.
Dongfeng’s planned entry follows the latest rush by Chinese automakers to make inroads into the country.

In January, Chinese state-owned BAIC Motor unveiled Kenbo 600 SUV, the first Chinese passenger vehicle to sell in the Korean market. 

Meanwhile, Chinese EV maker BYD Auto, the world’s largest EV maker, set up a Korean unit in Jejudo last year, and will soon begin operations by introducing electric busses first.

By Ahn Sung-mi (sahn@heraldcorp.com)