Santa Fe, Sorento, Torres to lead mid-sized SUV sales war in Korea

Three leading South Korean automakers – Hyundai Motor Co., Kia Corp. and KG Mobility Corp. – are upping the ante in their fight to garner a greater share of the fast-growing mid-sized sport utility vehicle (SUV) market by launching sleek and stylish new models.

Mid-sized SUVs have become increasingly popular among Korean drivers as family cars, and their sales growth trend will continue throughout the year, industry watchers said.

In the first seven months of this year, mid-sized SUV sales in Korea reached 117,943 units, up 24.7% from the year-earlier period, industry data showed.

The Kia Sorento topped the list with 42,236 vehicles, followed by KG Mobility’s Torres with 27,218 units. Hyundai’s Santa Fe came in third with 18,636 units.

Mid-sized SUVs have been the top sellers in the Korean car market for five consecutive years from 2018 through 2022. They accounted for 15%, on average, of domestic passenger car sales during the period.

Industry officials attributed those vehicles’ popularity to their suitability for family travel and affordable prices.

As Hyundai, Kia and KG Mobility are unveiling new flagship SUV models, their combined mid-sized SUV sales could rise above 200,000 units this year – the first time to do so since 2018 when sales reached 209,846 vehicles, analysts said.

NEW FLAGSHIP MODELS

Hyundai, Korea’s top automaker, will soon unveil a fully revamped Santa Fe, the fifth generation of the model.

The All-New Santa Fe will have a completely different exterior, most notably a boxy design – a shift from its previous curvy shape. The new model will come with a gasoline or hybrid engine, but not a diesel one, in line with global eco-friendly trends.

The 20-year-old Hyundai Santa Fe has sold 1.38 million units in the Korean market since its launch until end of the first half of this year.

Kia, the sister firm of Hyundai, is unveiling a facelift model of the Sorento this month.

A popular mid-sized SUV that was the bestseller in the Korean market last year, the Kia Sorento is fiercely competing with the Hyundai Santa Fe, particularly in the hybrid model segment.

KG Mobility is slated to launch the Torres EVX, its first EV model since the company changed its name from Ssangyong Motor Co. in March.

The electric version of the Torres will have a starting price in the upper 40 million won ($30,616) range. The price tag will drop to the lower 30 million won range with state subsidies.

LOCAL VS IMPORTED SUVs

Among imported vehicles, the rear-wheel-drive version of Tesla’s Model Y will compete with Korean rivals in the mid-sized SUV segment.

The Tesla Model Y is priced at 56.99 million won, qualifying for Korea’s state subsidies for EVs.

The showdown comes as foreign carmakers are bringing their flagship models to challenge Korean peers on the SUV turf.

Japan’s top carmaker Toyota Motor Corp. said last month it is launching its latest model of the seven-seater, three-row Highlander SUV in Korea in a push to win back Korean consumers.

Once popular in Korea, Toyota has faced a “boycott of Japanese products” for years, following elevated political tensions between the two governments of Korea and Japan.

Write to Il-Gue Kim at Black0419@hankyung.com

In-Soo Nam edited this article.