LPG Car Sales 'Stagnation'

After Deregulation in March Last Year, 'Temporary Boom'
Demand Remains at Last Year's Level This Year

Compared to 2018, Only LPG SUV Demand Increased
"Expanding New LPG Lineup Needed for Market Growth"

The New QM6 LPe (Photo by Renault Samsung Motors)

[Asia Economy Reporter Kim Ji-hee] General demand for liquefied petroleum gas (LPG) vehicles is falling short of expectations. After the regulation on LPG vehicle use was lifted in March last year, there was a brief surge in demand, but with new model releases failing to gain momentum, sales growth appears to have stagnated a year and a half later.

According to the Korea Automobile Manufacturers Association on the 24th, LPG passenger car sales in the first half of this year reached 58,131 units. This is about half of last year's total sales (117,534 units), indicating that sales are no longer increasing. This is especially disappointing considering that since LPG vehicles were allowed to be sold to the general public last year, the product lineup has expanded and new models of major vehicles have been released.

The increase in demand for LPG passenger cars seems to be concentrated only on newly added sport utility vehicle (SUV) models. Currently, the only LPG SUV model sold domestically is Renault Samsung Motors' QM6. The QM6 LPG model sold 20,726 units within six months after its launch in June last year, and recorded 15,155 units from January to June this year. The difference in LPG passenger car sales between the first half of 2018, before deregulation, and the same period this year is about 17,000 units, meaning that demand has effectively increased only for LPG SUVs.

This trend is clearly reflected in the total number of registered LPG passenger cars. According to the Ministry of Land, Infrastructure and Transport, as of July, the number of registered LPG passenger cars was 1,808,279 units. Compared to January last year (1,822,793 units), the number of registered LPG passenger cars has actually decreased.

When the government relaxed regulations last March to allow the general public to purchase LPG vehicles, the market had mixed reactions. Optimists believed it could serve as a catalyst for recovery by creating a new market amid a stagnant automobile market, while pessimists pointed out that low fuel efficiency and a shortage of LPG refueling stations would make it difficult for the market to expand significantly. Many also evaluated that the deregulation came too late as domestic and foreign automakers had already begun transitioning to eco-friendly vehicles in earnest.

One reason the LPG vehicle market's growth has been slower than expected is that companies have been reluctant to launch new LPG models. Professor Kim Pil-su of the Department of Automotive Studies at Daelim University said, "The biggest problem is that automakers are not expanding the lineup of new LPG models," adding, "Especially, LPG models should be added to vehicle types with high demand among ordinary consumers, such as SUVs and minivans."

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