Korea’s mid-tier carmakers struggle as sales decline

South Korea’s three mid-sized carmakers — GM Korea, KG Mobility and Renault Korea — are struggling at home as Hyundai and Kia tighten their grip on the market. The growing dominance of the top two brands has sparked concerns about shrinking choices for consumers.

According to Carisyou Data Research Institute, the three companies registered a combined 109,101 new vehicles last year. KG Mobility led with 46,988 units, followed by Renault Korea with 37,822 and GM Korea with 24,291. Their total registrations peaked at 258,359 units in 2020 and have declined every year since.

Their domestic market share has also plunged, dropping from 15.6% in 2021 to 7.6% last year. Over the same period, Hyundai and Kia's combined share climbed from 67.7% to 74.2%.

Industry analysts point to the lack of strong new models as a key reason for the slide. With limited production capacity and research resources, the mid-sized brands have struggled to introduce vehicles that can boost sales.

Sales figures show their best-selling models have steadily lost ground. Renault Korea’s QM6 led the trio in 2020 with 47,931 units sold and again in 2021 with 38,031. KG Mobility’s Torres topped the list in 2023 with 38,210 units, while Renault Korea’s Grand Koleos was No. 1 last year with 20,524 units.

“Their competitiveness is weakening because of structural barriers to launching new models, while Hyundai and Kia are strengthening their dominance,” said Lee Hang-goo, a researcher at the Korea Automotive Technology Institute. “Such market concentration could end up hurting consumers.”


김형민 kalssam35@donga.com