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Category: Automotive

Retail News Asia is committed to providing both local and global retailers with the latest Auto and Car news throughout the Asian market. This on a daily base.

  • Korea’s auto exports on the rise, but local industry still struggling

    Korea’s auto exports on the rise, but local industry still struggling

    Attractive prices and returns have seen the number of Chinese customers buying high-end apartments in HCMC soar this year. Duong Thuy Dung, senior director of real estate market research firm CBRE Vietnam, said at a recent forum that 31 percent of high-end apartment buyers in HCMC in the first nine months were Chinese. This figure increased from only 2 percent in 2016 and 4 percent last year.

    In the last two years, Chinese were sixth among all buyers, but this year, they have surpassed Vietnamese to rank first.

    Only 24 percent of high-end home buyers are Vietnamese, CBRE data shows.

    Stephen Wyatt, country head of property service firm JLL Vietnam, said the number of Chinese buyers has been increasing because Vietnam has an attractive price compared to other markets like Hong Kong, Japan, Singapore, South Korea and Taiwan.

    Chinese people often compare prices in Vietnam with Shanghai when they buy properties, he said, adding that they hope to gain profit from higher property prices in Vietnam in the future.

    A high-end apartment in the city costs around $5,000 per square meter, but the same one in Hong Kong could cost four times, said Nguyen Khanh Duy, director of residential sales at real estate service provider Savills HCMC.

    Nguyen Hoang, director of research and development at real estate firm DKRA, said that the number of Chinese and South Korean buyers in HCMC started to increase last year.

    Chinese from Shanghai and Hong Kong are buying properties as investments (not to stay in). “Most projects that foreigners bought in the last two years are under construction,” he said.

    Other industry insiders said that the high returns that HCMC high-end apartments offer is attracting many foreign buyers.

    The rate of return is 5-6.5 percent in Thao Dien ward and Thu Thiem Peninsula in District 2, while in other Asian countries, this rate is only 3.7-5.2 percent, Duy said.

    CBRE senior director Dung added that it was not just Chinese, but foreign buyers in general who are showing an increasing interest in HCMC real estate.

    Dung said that each foreigner group has a different preference for high-end apartments. Customers from mainland China, Hong Kong and Taiwan prefer large-scale projects near the downtown HCMC.

    South Koreans like to buy apartments in the southern District 7 that hosts a large community of South Koreans, while Western buyers often look for a quieter lifestyle in eastern District 2.

    Dung said HCMC is estimated to receive 40,000 new apartments in the 2018-2020 period, 60-70 percent of these in the high-end segment.

    In the last three years 35,000 luxury apartments have come into the market, CBRE said.

    This is a major increase from 2012-2014 when fewer than 10,000 units were on offer, CBRE said.

  • Yamaha to invest $150 million in Grab Vietnam

    Yamaha to invest $150 million in Grab Vietnam

    Yamaha Motors has announced a $150 million investment in Grab to collaborate on motorcycle ride-haling. The collaboration will be for Southeast Asia in general and Indonesia in particular. Through this partnership, Yamaha Motors and Grab aim to “develop next-generation mobility services by implementing solutions and innovations,” Grab said in a press release issued Thursday.

    The two companies aim to leverage Yamaha Motor’s technology and knowhow to boost safety as well as make it easier for Grab’s driver partners to buy motorbikes.

    Yamaha Motors also aims to leverage Grab’s customer base in Southeast Asia and knowledge of the motorcycle ride-hailing business for future product development.

    The Southeast Asian ride-hailing firm is teaming up with global investors to expand its reach after forcing Uber out of Southeast Asia earlier this year.

    Toyota Motor Corp. had said in June it was investing $1 billion in Grab, and Hyundai Motor Co. last month agreed to put an additional $250 million into the company as well as sell Grab a fleet of electronic vehicles.

    The focus on Indonesia may mean that Grab is intensifying its push against local ride-hailing platform Go-Jek. Both companies now compete in the Vietnamese market after the Jakarta-based start-up commenced operations in Vietnam under the name Go-Viet some months ago.

    Grab entered Vietnam early in 2014, but is currently under an antitrust investigation after acquiring Uber’s services in March.

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  • KDB to pay GM Korea by the end of the month

    KDB to pay GM Korea by the end of the month

    The state-run Korea Development Bank (KDB) said Thursday it will complete its injection of $750 million into the Korean unit of General Motors later this month, ending a controversy over GM Korea’s plan to spin off its research unit. The KDB and GM signed a deal in May on the rescue package for GM Korea.

    Under the agreement, the KDB pledged to inject $750 million, while GM agreed to provide $3.6 billion in fresh loans to keep GM Korea afloat.

    The condition to the additional investment was that GM would keep its Korean operation open for a minimum of 10 years.

    In June, the KDB injected $375 million into GM Korea, but the bank said the remaining half may not be provided amid concerns that the U.S. carmaker may keep only its research facility in Korea and eventually shut down its manufacturing facilities here.

    KDB Chairman Lee Dong-gull in October told lawmakers that the remaining investment may not be executed, depending on policy decision.

    The KDB’s decision came after GM Korea submitted details of its spin-off plan to the bank, the second-largest shareholder of GM Korea.

    The KDB has a 17-percent stake in GM Korea.

    The KDB said it will buy about 11.9 million preferred shares of GM Korea for 404.5 billion won ($360 million), or 33,932 won per share.

    The transaction will be made on Dec. 26, the KDB said.

    The May agreement prohibits GM from selling any stake in GM Korea over the next five years and limits GM’s right to sell shares or assets in GM Korea for 10 years.

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  • Hyundai sets aside 1.67 trillion won to support its suppliers

    Hyundai sets aside 1.67 trillion won to support its suppliers

    Hyundai Motor Group has introduced a 1.67 trillion won ($1.49 billion) support program for small and midsized auto parts suppliers, the company said Thursday. As auto parts suppliers in Korea tend to be highly dependent on the performance of carmakers, the sluggish performance of Korea’s largest auto group by sales this year has been a major blow to their earnings.

    A report published by the Economic Research Institute run by the Industrial Bank of Korea earlier this year showed that 48 percent of domestic auto parts suppliers supply parts to a single carmaker and their business growth is highly dependent on the growth of that carmaker. Also, while carmakers have extra capital to respond to ups and downs in their earnings, small-sized parts suppliers are more vulnerable to changes in the market.

    Hyundai Motor Group said it will first create a 140 billion won fund for its suppliers and subcontractors. Suppliers will be able to borrow money at low interest rates and use it to stabilize their business or invest in research and development.

    Considering many suppliers lack liquidity due to the massive investment and costs incurred in early stage R&D and parts manufacturing, the group also said it will pay forward some of the cost incurred in those activities. For instance, part of the cost incurred to develop parts used in Hyundai cars will be paid by the carmaker at the beginning of development rather than after the finished product is designed. The auto group estimates its suppliers and subcontractors will receive roughly 1.46 trillion won in investment upfront over the next five years.

    Hyundai Motor, Kia Motors and auto parts affiliate Hyundai Mobis are also creating a 15 billion won fund to provide emergency aid to suppliers.

    There is a special program for suppliers expanding facilities to support the mass production of Nexo, Hyundai’s fuel-cell powered vehicle. The group is planning on injecting up to 44 billion won into suppliers and subcontractors that expand investment into facilities for parts used in the Nexo next year.

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  • Hyundai Motor bets 6.7 billion dollars on hydrogen cells

    Hyundai Motor bets 6.7 billion dollars on hydrogen cells

    Hyundai Motor Group said it will invest 7.6 trillion won ($6.7 billion) in fuel-cell electric vehicles (FCEV) by 2030, betting big on hydrogen as the energy source for the future. The group announced what it called its “FCEV Vision 2030” on Tuesday, promising to build production capacity of 500,000 FCEVs yearly by 2030 to take the lead in the fledgling industry. It added that the investment will generate some 51,000 new jobs by 2030.

    As a first step, Hyundai Mobis, the auto parts and software affiliate of Hyundai Motor, held a groundbreaking ceremony for its second fuel cell stack factory in Chungju, North Chungcheong, on Tuesday.

    If the factory is completed in 2022, Hyundai Motor Group’s production capacity for fuel cell stack will expand from its current 3,000 units per year to 40,000 units.

    “Hyundai Motor Group will become the first mover in the new hydrogen society that will arrive soon,” said Chung Eui-sun, Hyundai Motor Group’s executive vice chairman, in a speech at the ceremony in Chungju on Tuesday.

    “The group plans to expand the fuel cell stack production capacity to 700,000 units by 2030, including for the 500,000 FCEVs we plan to make by that year.”

    The ceremony was attended by Minister of Trade, Industry and Energy Sung Yung-mo, Hyundai Motor President Chung Jin-haeng and Hyundai Mobis President Lim Young-deuk.

    Hyundai Mobis’ Chungju plant is focused on producing parts for eco-friendly vehicles like hybrid and electric cars.

    Last year, it constructed a new section dedicated to making fuel cell stacks with a capacity of 3,000 units per year.

    The carmaker forecasts that hydrogen will be used as an energy source in shipbuilding, railways and forklifts in the future and said it would start a business supplying fuel cell modules to other companies. The additional 200,000 units of FCEV modules that are not used in Hyundai Motor’s own FCEVs by 2030 will be sold elsewhere, the carmaker said.

    Executive Vice Chairman Chung said the FCEV industry will become a new growth engine for Korea.

    “Ninety-nine percent of auto parts in FCEVs are made domestically,” Chung said, “which is why its growth will have big ripple effects on other companies related to the industry. Through co-investment with partner companies, [Hyundai Motor] will try to build new growth engine for Korea’s future car industry.”

    Currently, some 130 partner companies are providing parts for fuel cell stacks made by Hyundai Mobis.

    Hyundai Motor has been making hefty investments in FCEVs along with rival Toyota. It was the first carmaker in the world to make a mass-produced FCEV model in 2013 called the Tucson ix35. It launched a hydrogen-powered Nexo SUV early this year.

    Since last year, the carmaker has been chairing the Hydrogen Council, a global lobbying group. Other companies represented on the council include Daimler, BMW and Air Liquide.

    The Korean government plans to supply 16,000 FCEVs and build 310 FCEV charging stations by 2022. There are currently only around 10 stations available to the public in Korea.

    China plans to supply 1 million FCEVs by 2030 and construct 1,000 charging stations. Japan plans to supply 40,000 FCEVs by 2020 and build 160 charging stations.

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  • Grandeur is likely to be Korea’s 2018 best-selling car

    Grandeur is likely to be Korea’s 2018 best-selling car

    As a result of its successful attempt to attract younger drivers with a new design and cost effectiveness, Hyundai Motor’s large Grandeur sedan is likely to be the best-selling car in Korea for a second consecutive year. Its hybrid engine largely contributed to the triumph.

    The Grandeur IG sold a total of 102,682 in Korea units as of the end of November, becoming the first and only model this year to surpass the 100,000 mark.

    The sales figure fell slightly, however, compared to the 123,000 units sold last year during the same period.

    Hyundai Motor said the Grandeur’s hybrid engine towed sales for the model. In November, a total of 2,302 Grandeur Hybrids have been sold, the highest monthly sales since its launch.

    Closely trailing behind in second is Hyundai Motor’s large Santa Fe SUV, which climbed up eight spots from No. 10 last year.

    Last year, the Santa Fe sold a total of 54,334 units in Korea. After launching a fully revamped version early this year and riding on a global trend to prefer SUVs, a total of 98,559 Santa Fes have been sold this year, according to the carmaker.

    With the Grandeur pulling in the younger generation, its midsize Sonata sedan is losing ground.

    The Sonata, which was either the bestseller or runner up for more than five consecutive years, tumbled to the third spot last year among all passenger cars in Korea.

    This year, the midsize sedan tumbled to sixth, selling a little more than 60,000 units.

    The top 10 spots were all taken by either Hyundai Motor or its smaller affiliate Kia Motors.

    The other three Korean carmakers – GM Korea, Renault Samsung Motors and SsangYong Motor – struggled to sell their cars to Korean consumers. Internal issues and a lack of new vehicles has largely contributed to the automaker’s struggle.

    SsangYong Motor’s best-selling model was the small Tivoli SUV, which sold a total of 39,330 units as of the end of November. GM Korea’s best-selling car was the compact Spark, which sold a total of 34,616 units during the same period. For Renault Samsung Motors, which didn’t launch any new passenger car model this year, its best-selling model was the QM6 SUV, which sold a total of 28,180 units as of November.

    It was Mercedes-Benz’s year when it came to imports. The E300 4MATIC line topped the ranks as of the end of November, selling 8,336 units followed by the E300 trim with 7,816 units.

    In the third spot was Lexus’ hybrid ES300h, which sold 7,805 units. BMW’s 520d, which was the most popular import last year, was hurt by the burning engine crisis over the summer and fell to fourth spot with 7,668 units in sales.

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  • Renault to start making Twizy cars in Korea from next year

    Renault to start making Twizy cars in Korea from next year

    Renault Samsung Motors, the Korean unit of French carmaker Renault S.A., is planning to start producing the Twizy ultra-small electric car in its sole domestic plant next year, industry sources said Monday. Renault Samsung, Busan Metropolitan City, and the Ministry of Trade, Industry and Energy are expected to sign an initial agreement this month to begin manufacturing Twizys, which are classified as heavy quadricycles in some countries, a person with direct knowledge of the matter said.

    He said assembly will begin “sometime during the 2019” at the carmaker’s plant in Busan, some 453 kilometers (281.5 miles) southeast of Seoul.

    This year, Renault Samsung has sold most of the 1,000 Twizys that were produced in its parent Renault’s plant in Valladolid, Spain, and shipped to Korea, a company spokesman said.

    The company plans to roll out up to 15,000 Twizys annually for domestic sales and exports to Asian markets, another person familiar with the matter said.

    Renault Samsung didn’t confirm the plan.

  • VW new sedan model launched

    VW new sedan model launched

    Volkswagen launched its sleek new midsize Arteon sedan in Korea on Wednesday with high hopes that the car will overshadow consumers’ memories of the company’s emissions rigging scandal, which was first revealed three years ago. The sedan is the last of the five cars the German automaker promised to roll out in the local market in April, when it opened up a press event to show it was back in Korea after suspending sales in 2016.

    Stefan Krapp, the managing director of Volkswagen Korea, said he is “convinced the new Volkswagen Arteon will be another best seller in the Korean market, alongside the Tiguan, Tiguan Allspace and Passat,” during the launch event. He introduced the new sedan as its “new flagship model that opens a new chapter of Volkswagen’s design language.”

    The latest sedan is positioned at the top of the carmaker’s sedan line up, even above the Passat GT, according to Krapp.

    Under its sporty-looking exterior lies a spacious interior, thanks to the Arteon’s 28.40 centimeters (11.18 inches) wheelbase, which the carmaker says is the longest among its competition. The storage space can be as large as 1,557 liters (55 cubic feet) when the backseats are folded down.

    All Arteons come with a whole package of driving assistance programs, including adaptive cruise control and parking assist as basic features, in line with the digital trend sweeping the auto market. The cars come in two trims – Arteon Elegance Premium and Arteon Elegance Prestige. The most distinct feature of the Arteon is its quality assurance program.

    Krapp said the carmaker’s utmost priority is regaining consumer trust and reaffirmed the company will not compromise on quality.

    Volkswagen’s Triple Trust Program, exclusive to the Arteon, offers a bumper-to-bumper warranty for five years or 150,000 kilometers (93,205 miles), whichever comes earlier. The program also guarantees up to 1.5 million won ($1,347) in maintenance costs when metal plating or painting is necessary after an accident. For windshield glass, side mirrors and tires, which often need to be replaced, the company will guarantee up to 2 million won in repair cost.

    “This package is the best available in the market, I would say,” Krapp said. He added that in the import car market, where consumers usually sacrifice either style or value for money, the Arteon offers both.

    “This is how we will challenge our competitors,” he added.

    Though Volkswagen had no sales at all last year, it has gradually been coming back to life thanks to the popularity of the four models it launched earlier this year: the Passat GT, Tiguan, Tiguan Allspace and Passat TSI. The automaker’s market share in the local market is still in the single digits, low compared to good days when its shares were in the double digits, but it managed to reach 5.65 percent market share this year through October and sell a total of 12,294 cars.

    Whether the Arteon will help sales is another question, as it’s a pricey product. The more affordable Arteon Elegance Premium carries 52.2 million won price tag, while the Prestige model sells for 57.1 million won.

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  • Hyundai Motor rejects renewed Gwangju plan

    Hyundai Motor rejects renewed Gwangju plan

    Hyundai Motor refused a revised plan that removed a restriction on collective wage bargaining at a proposed plant in Gwangju, further complicating plans for the factory. A council with representatives from the local government and area employers, labor unions and citizens on Wednesday agreed to remove a clause from the agreement that would have suspended collective bargaining for about five years at the new joint venture between the Gwangju city government and Hyundai Motor.

    The new company will be hiring workers for a production plant to be built on 628,000 square meters (155 acres) of land in the Bitgreen National Industrial Complex. The venture is the first in Korea to bring government and private industry together in the formation of a new manufacturing facility.

    Union representatives strongly protested the clause, calling it toxic.

    Rather than pushing the clause, the council decided to offer three alternative proposals to Hyundai Motor. The city and the automaker will continue negotiations.

    “Over time, Hyundai Motor and the labor union have retreated in their demands,” said Lee Byung-hoon, Gwangju vice mayor. “But the suspension of the wage bargaining clause was the biggest issue.”

    After the announcement was made, it was Hyundai that refused the proposal.

    “We cannot help but to point out the repeated revisions and backtracking [done by the Gwangju government],” Hyundai said through a statement.

    In the first meeting held at 10:30 a.m., all nine labor representatives, including Yoon Jong-hae, head of the Federation of Korean Trade Union’s Gwangju office, refused to attend in protest of the wage bargaining ban.

    The agreement between Gwangju city and the Korean automaker had included a clause in which wage negotiations were to be suspended until the cumulative production of compact SUVs reached 350,000 units. As Hyundai Motor guaranteed a minimum of 70,000 units a year, the labor union estimated that it would take about five years before the employees at the new plant would be able to negotiate.

    The meeting resumed at 3 p.m., and Yoon joined, raising the number of attendees to 22 out of a possible 28.

    The plant proposal has been under a tight deadline as an agreement needs to be reached before the National Assembly passes the budget. The ruling Democratic Party has announced that it plans to pass next year’s budget soon.

    Meeting the budget deadline is crucial as the city needs government funding to build the necessary infrastructure, including housing that will cost roughly 300 billion won ($269 million).

    The Gwangju plant project, first proposed in June 2014, has generated significant public interest as it could keep manufacturing jobs in Korea and contribute to the revitalization of the regional economy. It would also help ease the burden of high labor costs.

    The plan is for the Gwangju government and Hyundai Motor to create a new joint-venture company. The new Hyundai Motor plant will have the capacity to produce 100,000 compact SUVs a year.

    One of the key factors in this new job creation model is that employees will receive an annual salary of 35 million won, 38 percent of the 92 million won average salaries of Hyundai Motor workers.

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  • Kia’s sporty K3 GT balances speed and safety

    Kia’s sporty K3 GT balances speed and safety

    Kia Motors’ compact K3 GT hatchback stays true to its GT moniker with its impressive driving experience, but sacrifices comfort in search of a sportier style. Across an 80 km (50 mile) drive from Namyangju to Paju in Gyeonggi on Nov. 22, the K3 GT zipped across a course that mostly covered highways.

    Its driving performance was a far cry from the original commuter version as the vehicle’s acceleration responded instantaneously thanks to its 1.6 liter turbocharged engine. The GT responded to even the slightest pressure on the pedal, zooming to 180 kilometers per hour (112 miles per hour) with ease. Along with fast acceleration, the K3 GT rumbled when accelerating as the car’s electronic sound generator (ESG) added to the real sound from its new tuned dual mufflers, similar to the ESG included in Kia’s sports sedan, the Stinger.

    Petrol heads will also appreciate the sporty D-cut steering wheel on the front-wheel drive, which produced accurate steering as the vehicle entered and exited corners and a natural feel when switching lanes.

    While the fast GT may please driving enthusiasts with its performance, it doesn’t provide for the most comfortable ride.

    At high speeds of 150 km per hour, the hatchback model produced some road and tire noise that soon became distracting. The sound from the ESG and the unwanted cacophony of warning beeps from its various safety features didn’t help with the situation either.

    The vehicle also comes with tubular seats, which emphasize its racing theme and hold the driver in place during quick acceleration, but feel quite stiff on the passenger’s side.

    The interior has a clean, simple look with red stitching on the front seats that accentuates the sporty aesthetic. But the car will likely tire passengers during long-hour drives due to its tough and hardy feel.

    The sporty vehicle, however, maintains a competitive edge in safety as it comes loaded with a variety of smart features including forward collision warning and lane keeping assist in all its trims.

    While the various beeps that come in a range of pitches may be obtrusive, the lane keeping and changing features worked perfectly during the drive, as the steering wheel shifted on its own to steady the vehicle and issued alerts whenever a car was nearby when switching lanes.

    As for its exterior, the GT is a familiar offshoot of the original K3. It retains much of the original front design, but adds a touch of flair with subtle red accents in its signature Kia tiger-nose grille and 18-inch alloy wheels with an option of Michelin summer tires.

    The vehicle also keeps in touch with the utilitarian side of the original model, marking a return to foldable back seats that provide spacious room for storage.

    The original K3 has sold 37,125 units in the domestic market until October this year, 63 percent more than during the same period last year. The GT, offered either as a sedan or a hatchback, adds a sporty edge to Kia’s compact lineup, competing with Hyundai Motor’s high-performance offerings, such as the Avante Sport and the hatchback i30 N Line.

    “The K3 GT incorporates a powerful engine and technology optimized for high-speed driving to strengthen the driving performance,” said Kwon Hyug-ho, head of domestic sales at Kia Motors.

    The K3 GT starts at 19.93 million won ($17,800) and the entry hatchback version at 22.24 million won, compared to the 15.71 million won entry version of the 2019 K3 model.

    The competitive pricing puts pressure on Hyundai’s Avante Sport, which starts at 19.64 million won and the i30 N Line at 23.79 million won.

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  • Hyundai’s Genesis G70 named Motor Trend’s Car of the Year

    Hyundai’s Genesis G70 named Motor Trend’s Car of the Year

    Hyundai Motor’s luxury Genesis G70 sedan was selected as the Car of the Year by U.S. auto magazine Motor Trend, firmly establishing it as a legitimate alternative to BMW’s long-reigning 3 Series. The G70’s victory was proclaimed in Motor Trend’s January issue with the headline “A Star is Born.” The vehicle competed with 20 other models including the Audi A6, Mercedes-Benz CLS and Lexus ES.

    It is the first time a Korean car has won the award since the media outlet began the Car of the Year award in 1949. Last year, the winner was the Alfa Romeo Giulia, while in 2016, it was the Chevrolet Bolt EV.

    The magazine praised the rapid development that Hyundai Motor has achieved in its quality and brand awareness in such a short time, pointing out that the Korean brand first entered the U.S. market in 1985 selling a “Giugiaro-designed hatchback for the low, low price of $4,995.

    “Fast-forward to the present. How beyond belief is that the same cheap and cheerful automaker – Hyundai – not only has launched a luxury brand but has also built a better BMW 3 Series fighter right out the gate than the Japanese luxury brands have in numerous attempts?” the article read.

    The judging panel, made up of the magazine’s editors and engineering experts from top car brands, praised the sedan’s performance, particularly when equipped with a 3.3-liter engine. Its cousin, Kia Motors’ Stinger, which shares the same platform as the G70, missed the spot last year due to its lack of a sporty suspension.

    As an all-rounder, the Genesis G70 “pulls to infinity and beyond,” said Chris Theodore, a guest judge.

    Hyundai Motor expects its triumph to continue next year with the North American Car of the Year award, which will be announced at the North American International Auto Show in Detroit in January.

    “The Motor Trend’s Car of the Year award is expected to have positive effect in Genesis sales,” a Hyundai Motor spokesman said.

    The Genesis G70 was the first model to be released under Genesis after it was launched independently of the Hyundai brand. Other models – the G90 and G80 – were just partially revamped and renamed versions of existing models under Hyundai.

    The model ranked No. 1 in this year’s J.D. Power survey in quality, pushing aside long-running luxury brands like Porsche and BMW.

    The accolades didn’t translate to sales, however, as it continues to struggle in the U.S. market. The Genesis G70 sold 51 units in October in the United States.

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  • Biggest car rental company heading to Vietnam

    Biggest car rental company heading to Vietnam

    Vietnam is the first stop for Enterprise Rent-A-Car in Asia, after 85 locations in Europe and the Americas. The world’s largest car rental servicer, Enterprise Holdings, recently announced that its Enterprise Rent-A-Car service is now available in Vietnam. The move is part of Enterprise Holdings’ goal to expand its car rental services across the Asia Pacific region.

    Enterprise Rent-A-Car will operate in Vietnam through its Vietnamese franchise partner MP Logistics.

    Cuong Dang, general director of Enterprise Rent-A-Car Vietnam, said the company currently has 300 rental cars, from 5 to 47 seaters, available in Ho Chi Minh City. The service is scheduled to be expanded to Hanoi and central Da Nang City in the first quarter of 2019.

    Rent-A-Car’s initial strategy will be to grow a base of corporate customers, foreign employees of multinational companies with operations in Vietnam. The initial emphasis will be on long-term rentals with a chauffeur.

    Later, it will expand its services to include short-term, chauffeur-driven options, self-drive rentals and leisure hire at popular tourist destinations likes Da Nang.

    Cuong said he believes that there is great demand in Vietnam’s car rental market but inadequate supply, and that in the future, this market will thrive.

    There are two reasons Vietnam’s car rental market will grow, he said.

    First, FDI growth will be maintained for the next 10 years, which will attract an increasing number of foreign workers.

    Second, the middle class is seeing strong growth. The younger generation does not accord much priority to saving to buying luxurious cars and big homes, but tend to pay more attention to quality of life and experiences, and as such would be more willing to rent cars.

    However, Cuong noted that the Rent-A-Car model brought to Vietnam would take longer to recoup capital and profits than in the U.S.

    “The price of buying a car in Vietnam is twice that in the U.S., but the rental price is the same in both markets, so the business risk will be higher,” Cuong said.

    Todd Prister, regional director for the Enterprise Franchise Asia-Pacific said that the company is excited about the potential of Vietnam’s economy.

    “Vietnam not only has one of the highest growth rates in the world as well as attractive business markets, but also is a prominent destination in Southeast Asia. Combining these factors, Vietnam will be a brilliant opportunity for us,” said Todd.

    Enterprise is the largest car rental company in the U.S. and is the 13th largest private enterprise in the country.

    Todd Prister said Enterprise is also the largest car rental company in the world in terms of vehicles owned, employees and sales.

    The company is present in 85 countries, 10,000 locations, owns over two million vehicles and has an average annual turnover of about $22 billion.

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  • Hyundai’s Palisade premiers at LA Auto Show

    Hyundai’s Palisade premiers at LA Auto Show

    The Palisade, Hyundai Motor’s latest effort to rework its lineup in the direction of globally-popular SUVs, was premiered at the 2019 LA Auto Show on Wednesday. Chung Eui-sun, Hyundai Motor’s executive vice chairman, was in attendance. The eight-seat vehicle is the biggest model in Hyundai Motor’s SUV lineup, which includes the small Kona, the midsize Tucson and the Santa Fe.

    The vehicle “looks good,” Chung said after the introduction at the LA Convention Center.

    When asked if the Palisade will boost sales in the U.S. market, Chung replied “it remains to be seen” and estimated the carmaker’s sales target next year to be “similar to this year’s or a little more than that.”

    Hyundai Motor, with its sedan-oriented lineup, is seen as being behind the curve with its a-bit-too-late SUV launches. In attending the event in LA, Chung missed the launch of the Genesis G90 in Korea, suggesting that the priority lies with the Palisade.

    With a spacious interior and convenient features throughout the three rows in the back, the Palisade has been developed to suit families.

    “From the driver’s seat to the third row in the back, [the Palisade] suits contemporary customers who have a desire for individual space while also providing comfortable space just like home,” Brian Smith, chief operating officer of Hyundai Motor America, said at the press event Wednesday.

    The car is equipped with a roof air ventilation system, which circulates the air inside the car from the first row to the third row to enhance the air quality. It enables passengers in each row to control the air conditioning on their own. There are USB ports for charging electronic devices in each row as well.

    Two engine types are available: the 2.2-liter diesel and 3.8-liter gasoline. Hyundai Motor started taking preorders in Korea on Thursday and will launch the vehicle officially in December. It will launch in the United States next year.

    The diesel version price starts at 36.2 million won ($32,300) and the gasoline model 34.7 million won.

    Kia Motors, an affiliate of Hyundai Motor, premiered the fully-revamped version of its Soul at the LA Auto Show. It unveiled the electric version of the car as well as the Niro EV.

    The new Soul and the Soul EV will launch in Korea and in global markets in the first quarter of next year.

    Some hefty SUV models from global carmakers were on display at the LA Auto Show. BMW premiered the X7 SUV and Mercedes-Benz unveiled the Maybach GLS, the first SUV model under the premium Maybach label.

    Lincoln, a premium Ford brand, unveiled the seven-seater, three-row Aviator SUV, and Jeep showcased the Gladiator, a midsize pick-up truck.

  • SsangYong launches Rexton Sports in Latin America

    SsangYong launches Rexton Sports in Latin America

    SsangYong Motor, the Korean unit of Indian carmaker Mahindra & Mahindra, said Wednesday it has launched the Rexton Sports sport-utility vehicle (SUV) in Latin American markets to boost sales. SsangYong Motor launched the Rexton Sports SUV in Chile in September, Ecuador in October and Paraguay in November, following its launch in Europe in the second and third quarters.

    The carmaker plans to introduce the car in Africa and Middle Eastern markets in early 2019.

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  • BTS to promote new Hyundai Palisade SUV

    BTS to promote new Hyundai Palisade SUV

    Global K-pop sensation BTS has been chosen as the face of Hyundai Motor’s new large Palisade SUV, which will premiere at the upcoming LA Auto Show. The carmaker said Tuesday that it has appointed the seven-member boy band as the global ambassadors for the vehicle. The group will introduce the car in a video to be shown at the auto show today.

    According to Hyundai Motor, the group’s explanation will focus on the large SUV’s spacious interior and the convenient features found throughout its three rows of seats.

    “Hyundai Motor appointed BTS as the global brand ambassador of the Palisade as the K-pop group was considered the most suitable to introduce the new vehicle that is throwing the gauntlet down in the large SUV market,” the company said in a statement Tuesday.

    “The group will be able to deliver the greatly spacious interior of the Palisade, which is able to accompany seven to eight people.”

    Hyundai Motor said it would live stream the premiere on the automaker’s Facebook page. It will also post a range of videos featuring BTS and the Palisade on its social media accounts.