Renault-Samsung Emerges as Korea's 3rd Largest Carmaker

Seoul August 4, 2003; The Korea Times reported that even with growing competition among local and foreign carmakers in the Korean car market, domestic sales of RSM reached 13,170 units in July, higher than the 11,283 units of GM Daewoo and the 10,362 units of SsangYong Motor.

It is the second time that RSM, which has usually been ranked fourth or fifth in sales in Korea's automobile market, stood third. The last time RSM rose up the ranks of the Korea car market was when GM Daewoo and SsangYong were mired in trouble over a takeover deal and workout program, respectively, in September 2002.

The remarkable performance with only two sedan brands, its SM5 and SM3, is attributed not only to higher consumer demand, but to a shift consumer choice. According to industry watchers, many consumers made a switchover to RSM cars when a month-long strike at Hyundai and Kia interrupted sales.

RSM's flagship sedan, the SM5, became the best-selling model in the local commercial car market last month for the first time this year, with sales of 9,687 units, an 80.8 percent increase over the previous month, pushing Hyundai's New Avante XD down into second place. Hyundai's New Avante XD, which had led car sales for the first six months of the year, struggled with production delays due to strikes.

In line with the sharp sales increase, industry watchers predict that RSM will adopt a more aggressive approach to the local market, including launches of a large luxury sedan by 2004 and a sports utilities vehicle (SUV) by 2005.

``Despite the favorable market conditions following the strike in Hyundai and Kia, given that RSM has been in equal competition with SsangYong and GM Daewoo, RSM¡¯s sales performance in July is meaningful and will provide the company with the momentum to take another big stride toward greater growth, an industry watcher said.