April 27, 2024

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[THE INVESTOR] The first batch of Kenbo 600 SUVs from China’s BAIC Motor were grabbed up by customers in Korea despite diplomatic tensions over the US-led THAAD missile system, according to news reports on May 10.

According to Zhonghan Automotive, the local importer of the BAIC SUV, the initial shipments of 120 units were sold out in two weeks since its local debut in January. An additional 80 units shipped later were also sold.

The carmaker plans to import more than 320 units of the car in the coming months to meet the increasing demand.

A Zhonghan Automotive spokesperson was unavailable to comment on the matter.

The Kenbo 600 is appealing to local drivers with a cheaper price tag than its local rivals. The 1.5-liter gasoline-powered car sells for between 19.99 million won (US$17,627) and 20.99 million won, about 10 million cheaper than Hyundai Motor’s Santa Fe and Renault Samsung Motors’ QM6.

Sales of Korean-made cars, mostly from Hyundai and Kia, have plummeted in China amid the intensifying anti-Korean sentiment after Seoul decided to deploy THAAD. Beijing remains opposed to the missile system, calling it a risk to its security.

The THAAD row, however, hasn’t affected Chinese cars sold here as the number is quite low, industry watchers say.

Zhonghan is planning to release a compact SUV by end of this year to rival SsangYong Motor’s Tivoli and an electric vehicle next year.

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