GM Korea’s Trax Crossover is seen on this undated file picture. Korea Instances file
Trade officers on Wednesday urged Basic Motors (GM) Korea to spice up native gross sales by introducing extra fashions to its lineup amid lingering fears of the carmaker’s potential exit from the Korean market.
In response to firm knowledge, the variety of automobile gross sales to native clients noticed a big decline of 35.9 %, dropping to 24,824 items in 2024.
That is in sharp distinction with the carmaker’s complete auto gross sales, which incorporates export figures. GM Korea bought greater than 499,000 automobiles domestically and internationally, up 6.7 % throughout the identical interval.
Trade officers famous what’s broadly thought of an “insincere” gross sales technique adopted by the native subsidiary of the U.S. carmaker.
“The corporate seems to make the most of Korea as a key export base for its strategic SUV fashions, however has not taken any steps to deal with falling home gross sales largely as a result of lack of various automobiles in its lineup,” an official from the native auto trade mentioned.
GM Korea’s two strategic export fashions are the Trax Crossover and the Trailblazer, each of that are manufactured in Changwon, South Gyeongsang Province, and Bupyeong District, Incheon, respectively.
The corporate launched just one new automobile — the Colorado pickup truck — for the Korean market final yr.
The decline in home automotive gross sales is essentially attributable to the shortage of recent fashions in its lineup, in response to the official.
“That is why the carmaker is mired in steady rumors of potential pullout from the native market,” the official mentioned.
The rumors proceed to resurface, as the corporate has, lately, shut down a number of manufacturing traces right here and accepted voluntary retirement for its workers.
Whereas GM Korea focuses on boosting exports, the carmaker’s main rivals are increasing their native market share.
Final yr, Renault Korea achieved a serious gross sales rebound, pushed by the respectable success of its Grand Koleos SUV, surpassing GM Korea in complete automobile gross sales for 2024.
Earlier, the native subsidiary of the French automaker unveiled its technique to spice up native gross sales by launching the so-called „Aurora venture,“ below which the carmaker will make investments value greater than 1.5 trillion received ($1.02 billion) by 2027 and launch a gaggle of its various hybrid and electrical automobiles right here.
Audi Korea, which confronted a continued gross sales decline lately, additionally expressed hopes to reverse the development by launching a report variety of 16 new automobiles this yr for the Korean market.
“There stands a chance for any carmaker to withdraw their enterprise from abroad markets in the event that they solely play a job as a base for exports,” one other trade official mentioned.
