Renault Korea and GM Korea are facing high pressure to introduce new vehicles, as the absence of fresh models has caused a significant drop in sales.
Historically regarded as mid-tier automakers in Korea by sales volume, both companies are now facing competition from rapidly growing brands like Tesla and strong sales from established German luxury automakers.
Renault Korea reported selling 7,201 vehicles last month, marking a 42.2% decline compared to the same period last year.
The steep sales decline is majorly due to Renault Korea's heavy reliance on the Grand Koleos SUV as well as the Arkana compact SUV.
Last year, the company saw a long-awaited sales rebound, fueled by the success of its Grand Koleos hybrid SUV, which reached a total of 51,000 units sold by the end of last month.
Renault Korea is fully committed to driving sales growth with the upcoming launch of the Aurora 2 project next year. The Grand Koleos was the initial phase of this initiative, aimed at helping the company recover its position in the Korean market.
GM Korea is facing a similar decline, with sales falling by double digits last month. The company’s total commercial vehicle sales, including both domestic and international markets, decreased by 20.8% in October compared to the same month last year.
KGM is also regarded as a mid-tier automaker in Korea, alongside the local subsidiaries of Renault and GM. The company saw a 2.9% increase in auto sales during the same period, thanks to its strategy of focusing on the launch of new vehicles for the global market.