The Secret of This Car That Can't Be Bought on Domestic Flights Even If You Pay

"India prefers tall, China prefers long, Europe prefers compact"
Hyundai, Volkswagen, Toyota and other mass-market brands strengthen local strategies
Mercedes-Benz, BMW and other premium brands adopt same model strategies
Popular local strategy cars include India's Santro, Europe's Ceed, China's EV5

Local strategy models tailored to the characteristics of individual countries are gaining popularity in global markets. In particular, mass-market brands targeting developing countries such as China, India, and Southeast Asia are adopting local customization strategies as the trend. This involves changing specifications and designs and offering various price-range models to appeal to consumers in developing countries. On the other hand, premium brands, which are less affected by price, are pursuing a 'world car' strategy by offering the same models in all markets.

Cars are among the more expensive essential goods in daily life. Since they take up the second largest portion of household budgets after housing purchases, price significantly influences purchasing decisions. While the price difference between premium and low-end models in electronics is only tens of thousands of won, for cars, the difference ranges from millions to tens of millions of won. To create models at various price points, a customized strategy with different designs and configurations is necessary.

Manufacturers release models suited to local conditions by considering various factors such as each country's economic level, road conditions, tax policies, and culture (including religious and clothing characteristics). Especially, mass-market brands focusing on developing countries like China, India, Southeast Asia, and South America have a variety of local strategy models. In contrast, supercar and premium brands such as Mercedes-Benz, BMW, Porsche, and Rolls-Royce sell the same models worldwide, as wealthy consumers in any country are less sensitive to pricing policies.

Mercedes-Benz Plug-in Hybrid E-Class Sedan Long Wheelbase Version Sold in the Chinese Market
[Photo by Mercedes-Benz Official Website]

China is the market where local strategy models are most actively launched. Chinese luxury car buyers mainly employ chauffeurs. Accordingly, manufacturers have modified existing vehicles into long-wheelbase limousines with comfortable rear seats. Long-wheelbase versions of major models such as the Mercedes-Benz E-Class, Audi A6, BMW 3 Series, and Volvo S90 are popular in China.

Recently, the release of local electric vehicles has also increased. Electric cars equipped with advanced features are popular among the young generation in China. Volkswagen, which dominates China with its locally exclusive compact sedans, launched the mid-large electric SUV ID.6 in 2021. The ID.6 is produced and sold only in China. Kia will also launch the local strategy electric vehicle EV5 first in China by the end of this year. The EV5, the first Kia electric SUV produced in China, is expected to be equipped with state-of-the-art convenience features.

Volkswagen China-exclusive electric vehicle ID.6X
[Photo by Volkswagen website]

India is a market where selling many low-priced compact cars is necessary to make a profit. With a population of 1.4 billion, India's per capita income was $2,277 in 2021, only one-fifth of China's. This means there are not many people who can afford expensive cars. Hyundai succeeded in establishing itself in the Indian market with the compact car 'Santro,' reflecting these market characteristics.

The now discontinued Santro was Hyundai's first local strategy model. It was initially released in Korea under the name 'Atos.' In Korea, Atos was marketed emphasizing its high roof and spacious interior. However, it was overshadowed by the Daewoo Matiz in the domestic compact car market. Therefore, Hyundai modified the Atos and launched it in India under the name 'Santro.' Production was handled at Hyundai's Chennai plant in India.

Hyundai's India local strategic model 'Santro'
[Photo by Hyundai]

First, Hyundai maintained the tallboy style with a high roof. This is because many drivers in India wear turbans, and it is common for families of six or more to ride together even in compact cars. Hyundai raised the body and reinforced the suspension considering the many narrow unpaved roads in India. Reflecting India's unique design preferences, the radiator grille and C-pillar designs were volumized. To adapt to the hot and humid local climate, Hyundai enhanced the air conditioning system by installing air vents in the rear seats for the first time in its class. With this meticulous local customization strategy, the Santro became a national car in India. In the early 2000s, Hyundai recorded the number one market share in the Indian compact car market. Even recently, Hyundai has maintained its dominance in the compact car market by promoting local strategy SUVs such as the Creta.

Kia Europe-exclusive hatchback Ceed GT Line
[Photo by Kia]

Kia North America Exclusive Large SUV Telluride
[Photo by Kia]

Europe, with many old towns, requires cars that can navigate narrow alleys. Among these, compact cars (C-segment) with spacious interiors are popular. Europeans who travel long distances across the continent prefer fuel-efficient hatchbacks and wagons with high space utilization. Kia's European strategy model, the Ceed, is a C-segment hatchback suited to these preferences. In the United States, the home of SUVs, large SUVs and pickup trucks dominate. Kia launched the North America-exclusive large SUV Telluride, and Hyundai released the pickup truck Santa Cruz. Toyota's mid-large SUV Highlander and mid-size pickup Tacoma are also representative North American strategy models.

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