Subaru will become the seventh Japanese brand in Korea when it begins sales in April through Subaru Korea, a 100%-owned subsidiary of the stainless steel wire maker KOS Group.
“The Korean economy, especially the auto industry will continue to grow, and since Korea is mountainous and has a lot of snow and icy roads in the winter [Subaru’s] all wheel drive technology will appeal to Korean consumers,” Fuji Heavy Industries executive vice president Masatsugu Nagato told The Korea Herald as explanation for the company’s decision to enter the local market.
Go deeper with GlobalData
“I’m sure each market has its own character. We have to understand them very deeply, which is why we found a Korean partner. We have never sold a single car in this market and we aim to learn more through our partner.”
Nagato added that the company’s vehicles are “very different” from the competition with their symmetrical all-wheel drive system and high safety ratings especially in the US market.
Subaru will launch in Korea with the Legacy, Outback and Forester SUV and has a sales target of 600 vehicles through dealers in Seoul, Busan, Daegu, Gwangju and Bundang in Gyeonggi Province.
“Price is a big concern. We think that Toyota, Honda and Nissan will be our competition, and consumers will want low prices,” Subaru Korea CEO Choi Seung-dal told The Korea Herald.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We are negotiating with Subaru with such needs, and the value of the vehicles in mind.”
Hyundai leaves as Toyota surges
