Eco-friendly and ‘small premium’ are buzzwords for automobiles in 2009

	GM Daewoo Beat

Despite the hard times in the aftermath of the global financial crisis, Korean automakers and car importers will continue to launch new models in the local market this year.

Fuel-efficient small cars and eco-friendly hybrid electric vehicles are expected to dominate the trend of the new models, with some luxury models being released.

Among smaller models, a new mini car to be released by GM Daewoo Auto and Technology around August is attracting attention.

The Korean unit of the now-ailing U.S. giant General Motors developed the three-door hatchback for the parent company’s global sales. The car, with the project name M300, was unveiled at the New York Auto Show in April, 2007, as the “Beat” concept car of GM’s Chevrolet brand. The mini car with a 1-liter engine will replace GM Daewoo’s current Matiz mini car and will compete with Kia Motors’ Morning.

	Nissan Altima

“Last year, amid high fuel prices in the first half and concerns about the economy in the second, mini car sales surged by 152 percent on year, with the sales of all the other segments’ cars declining in the local market,” the Korea Automobile Manufacturers Association said in a recent report. “The sales of mini cars are expected to increase slightly in 2009, while total passenger car sales in the local market will decline by 8 percent.”

Hyundai Motor, Korea’s biggest automaker, will launch a next-generation version of the Sonata, the nation’s best-selling midsize sedan, on a new platform, in the second half. The model, with the project name YF, will be equipped with a six-speed automatic transmission developed by the automaker.

The six-speed automatic transmission will also be applied to a new small sport-utility vehicle, with the project name LM, which Hyundai will launch in July to replace its Tucson small SUV.

As for Hyundai’s smaller affiliate, Kia Motors, it will release a new model with the project name XM to replace its midsize Sorento SUV, in the first half. The new model will be equipped with a new eco-friendly diesel engine developed by the Hyundai-Kia Automotive Group.

	Mitsubishi Lancer

Kia will also launch the sport coupe version of its Forte small-size sedan, named Forte Coupe, with a 1.6-liter or 2-liter engine, in the first half. The model was unveiled as the “Koup” concept car, at the New York Auto Show early last year.

Renault Samsung Motors, the Korean unit of the France-based Renault SA, will unveil the next-generation version of the SM3 small sedan in the third quarter and that of the SM5 midsize sedan, the company’s most popular model, in the fourth quarter.

Ssangyong Motor, the Korean unit of the China-based SAIC, which is in severe financial difficulty, is scheduled to launch a new small SUV, whose project name is C200, in the second half. The smallest of Korea’s five automakers was battered last year not only by a sales freeze during the financial crisis but also by diesel price hikes in the first half of the year, as its product lineup is concentrated on SUVs with diesel engines.

Now, the automaker is finding a breakthrough with the new fuel-efficient compact SUV, which will be equipped with a 2-liter engine and six-speed automatic transmission.

	Toyota Prius

Relatively small SUVs will also be a trend among imported vehicles. The German-based Audi will release the “New Q5” midsize SUV and another German automaker, Mercedes Benz, will release the GLK small SUV in the first half, according to their Korean sales units.

“Small premium” will be a key phrase for other foreign auto brands. BMW will release the small two-door 120d coupe and a new version of the MINI Convertible, in the first half.

Japan’s Mitsubishi Motors will launch its Lancer small sedan this month.

The year 2009 could be remembered later as the year of dramatic expansion in Korea’s hybrid electric vehicle market.

Hyundai Motor announced last year it would commercialize a small liquefied petroleum gas/electric hybrid in July 2009, a first among local automakers. The model - the hybrid version of the Avante small-size sedan - will likely compete with the Prius, the world’s best-selling hybrid model, which Japan’s Toyota Motor will launch in Korea in around October.

	Audi Q5

Currently, only a few hybrid models of Toyota’s Lexus and Honda brands sell in Korea. They account for less than 1 percent of total imports, which have a 6 percent share in Korea’s auto market, mainly due to their high prices.

To solve the problem, the Korean government plans to provide up to 1.4 million won ($1,068.70) of reduction in acquisition and registration taxes on hybrids, beginning in July.

As for the Avante hybrid, its fuel efficiency will reach more than 20 kilometers (12.4 miles) per liter, compared to the ordinary Avante’s 13.8 kilometers per liter. The consumer price of the hybrid will be set at around 20 million won.

As for the Prius, its second-generation model, which now sells in the U.S. and other countries, shows fuel efficiency of 25 kilometers per liter and the fuel efficiency of its third-generation model, which will likely be the first Prius in Korea, reaches nearly 40 kilometers per liter. The hybrid version of Toyota’s Camry midsize sedan will also be introduced in the second half to compete with Hyundai’s Sonata sedan.

Meanwhile, Nissan Motor, another Japanese automaker, will release its Altima midsize sedan, adding to fierce competition in the midsize sedan market.

Though domestic demand is freezing, luxury sedans will be released as scheduled. As the first new model from a local automaker this year, a premium sedan, with the project name VI, will be released by Hyundai Motor in February. The model, 5.16 meters (16.9 feet) long and 1.9 meters wide, will replace the Equus sedan and will be the biggest Korean-made sedan.

It will compete with Ssangyong’s Chairman W and sedans in BMW’s 7 series and Mercedes-Benz’s S-Class.

Kia will also release a new large sedan, with the project name VG, in the second half, which will be its next-generation model after the Opirus.



By Moon So-young Staff Reporter [symoon@joongang.co.kr]