Diverging Dependence on 'TOP2' Models Among Three Automakers

'New Car Boom' Renault Samsung 85%
'New Car Slump' Ssangyong 65%
'Niche Strategy' Korea GM 56%

Renault Samsung XM3 (Photo by Renault Samsung)

[Asia Economy Reporter Kim Ji-hee] The three domestic automakers, which rely on one or two main models for more than half of their total sales, are showing divergent trends this year. So far this year, the proportion of sales accounted for by the 'Top 2' models at each company has soared to 85% for Renault Samsung Motors, while it has dropped to the 60% range for SsangYong Motor. The success or failure of major new models launched last year has led to these contrasting results.

According to the industry on the 9th, from the beginning of this year to May, a total of 35,631 units of the QM6 and XM3 were sold, accounting for 85.7% of Renault Samsung's total sales. This means that more than 8 out of every 10 Renault Samsung vehicles sold this year are concentrated in these two new models.

Renault Samsung's dependence on its top two models had been maintained around 65% until 2018. However, with the release of the facelifted QM6 model in June last year, this figure jumped to 73.6%. This year, the new XM3 model has been a huge hit, causing the sales dependence to surge again.

On the other hand, among domestic automakers, SsangYong Motor, which had the highest dependence on its main models, saw its dependence drop to 64.9%. This is due to the underwhelming reception of the new Tivoli and Korando models ambitiously launched last year. This year, among the four models SsangYong sells domestically, the sales of Tivoli and Rexton Sports are relatively high. Due to the poor performance of new models, there appears to be an illusion of even sales across all models.

Chevrolet Trailblazer RS (Photo by Korea GM)

Korea GM, which strengthened its lineup focusing on niche models instead of main models, lowered its dependence on the top two models to 56% this year. While the compact car 'Spark' maintains its position as the best-seller, the Trailblazer, launched earlier this year, jumped into the 'Top 2'. Existing major models such as Malibu and Trax, along with the large SUV Traverse and pickup truck Colorado launched at the end of last year, are also contributing. Through active introduction of new models, they have diversified their products, increased overall sales, and dispersed sales that were previously concentrated on a few models.

A sales structure concentrated on a few models is generally considered a negative factor as it increases management instability. Under such a structure, a decline in sales of main models could severely impact overall sales.

However, there is also a perspective that domestic automakers other than Hyundai Motor Company and Kia Motors face difficulties in diversifying their lineup due to high dependence on the domestic market and the burden of development costs. Because they must respond to the market with a small number of models, sales inevitably concentrate on specific models. An industry insider said, "For automakers with limited product variety, overall sales inevitably depend on the success of each new model. While high dependence on a few new models does mean vulnerability to risks, in the current market downturn, focusing on new models to boost sales is also a necessary strategy."

This content was produced with the assistance of AI translation services.