April 26, 2024

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[THE INVESTOR] Chinese carmakers who made launched their vehicles in Korea this year have shown lackluster performance, due to the lack of sales network and brand credibility, industry data showed on Oct. 30. 

Zhonghan Automotive, local importer of the Chinese carmaker BAIC Yinxiang, sold a total 281 units of Kenbo SUV from its launch in January to September, according to the Korea Automobile Manufacturers Association. Despite the initial buzz as the first Chinese passenger car in the market, Kenbo SUV’s monthly sales have remained at 20 to 30 units since May. 

The carmaker, which set an ambitious annual sales target at 3,000 units, will most likely miss it. 

Kenbo 600

The price of gasoline Kenbo 600 ranges from 19.99 million won (US$17,782) to 20.99 million won, about 10 million won cheaper than its local rivals Hyundai Motor’s Santa Fe and Renault Samsung Motor’s QM6. 

Despite its cheaper price tag, the carmaker faced difficulties due to low brand recognition, coupled with quality issues. Industry watchers also cite local consumers moving away from Chinese products, retaliating to the boycott of Korean products by consumers in China due to diplomatic tensions between Seoul and Beijing over the deployment of US-led THAAD missile system. 

Zhonghan was not available for comment on the matter. 

Chinese-made commercial vehicles grew only slightly in the cited period, despite new model launches. 

From January to September, a total of 424 trucks, buses and minivans were sold in the market, a slight increase from 399 in the previous year. 

Zhonghan sold 354 units of its CK minivan and mini truck, while Chinese state-owned carmaker Dongfeng Motor sold only 26 units in the cited period, despite its launch of C31 pickup truck and C35 minivan in May. 

To get a footing in the market, Zhonghan is planning to release a compact SUV this year to enter the heated segment dominated by SsangYong’s Tivoli and Hyundai’s Kona, and a new electric vehicle next year.

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