Renault Samsung Motors expects its first sport utility vehicle, the QM5, to help boost global sales to 200,000 vehicles next year.
Go deeper with GlobalData
Renault Samsung already sells a range of passenger cars derived from models designed by Renault’s Japanese Alliance partner Nissan.
“We expect total sales will be strongly supported by exports of the QM5, our first-ever SUV model across the Renault Group,” Park Soo-hong, senior executive managing director of Renault Samsung’s sales and marketing division, told Dow Jones Newswires, according to an Associated Press (AP) report.
Renault Samsung spent 560bn won ($US609m) over the past 28 months to develop the QM5, the report noted, and the automaker expects to sell 100,000 of the new SUVs in 2008 – 35% domestic and 65% export.
Dow Jones said the new model would be available for sale in South Korea from 10 December, and in the second half of next year around the world, becoming Renault Samsung’s second mainstay export after the subcompact SM3 [passenger car], which is shipped mainly to Russia.
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 GlobalDataJust to complicate things further, the Dow Jones/AP report said the SM3 is sold under the Nissan brand name, the Japanese firm is 44.3% owned by Renault.
The QM5, with its 2,000cc diesel engine, will be exported mainly to Europe under the Renault brand, the company reportedly said. Volume production began on Monday (19 November) at the company’s plant in Busan.
“There seem to be no obstacles for us to achieve this year’s sales target and we expect our domestic market share will be around 12% this year,” Park was quoted as saying.
The company had originally targeted a 13% market share, up from last year’s 12%, but the QM5 launch is a month behind schedule, according to the report.
Renault Samsung plans to sell 172,300 vehicles globally in 2007, up from 160,408 vehicles a year earlier.
AP noted that Renault acquired a controlling 80.1% stake in Renault Samsung in September 2000 from the former automotive unit of Samsung Group, South Korea’s biggest conglomerate.
Renault Samsung was South Korea’s fourth-largest automaker last year the report added, citing the Korea Automobile Manufacturers Association. Hyundai Motor, its affiliate Kia Motors and GM Daewoo Auto & Technology were the top three, and Ssangyong Motor ranked fifth.
