April exports rose 13 percent from March, led by a sharp jump in Korando shipments
Chairman Kwak Jae-sun’s focus on Turkey and Germany is beginning to show results
Overseas exports of KGM’s compact SUV Korando rose 245.7 percent from the previous month. Analysts say the increase reflects the success of KGM Chairman Kwak Jae-sun’s strategy.
[Insight Korea = Yun Chan-woo]
KG Mobility, or KGM, is showing signs of a rebound in overseas markets in the first month of the second quarter. At the center of the recovery is the Korando, a compact sport utility vehicle. Korando sales more than tripled from the previous month, helping lift exports. Analysts say the European market strategy that KGM Chairman Kwak Jae-sun has been cultivating is beginning to gain real momentum.
According to KGM’s sales results released on May 7, total sales last month reached 9,512 units, up 6.5 percent from a year earlier. Exports were the clear driver. Overseas shipments totaled 6,130 units, up 13.1 percent from 5,422 units in March.
The most notable figure was Korando sales. KGM exported 1,096 Korando units in April, a 245.7 percent increase from 317 units the previous month. Compared with the same month last year, sales rose by 270 units, or 32.7 percent.
The largest overseas export destination was Eastern Europe. A KGM official said, “We found that compact SUVs in Korando’s class are gaining popularity in Hungary among Eastern European markets, so we strengthened promotional activities around that region.”
“To overcome the slowdown in the domestic market, we are looking for growth engines in global markets,” the official added. “We are focusing on accelerating our global business while also making efforts to discover emerging markets.”
Kwak Jae-sun Targets Europe Through Turkey and Germany
The increase in exports is being attributed in part to Mr. Kwak’s focus on Europe. He has personally overseen the Turkish market, KGM’s largest export destination. In August 2024, he visited Turkey, presided over a dealer meeting and reviewed local sales conditions. In January last year, the company expanded its sales network in Turkey. KGM also held an Actyon launch and test-drive event with local dealers and journalists to promote the new model.
Expansion in Europe centered on Germany has also become more concrete. In August 2024, KGM established its second directly operated overseas subsidiary in Frankfurt, following Australia. On the day of the announcement, Mr. Kwak personally held a conference with local dealers, marking a more active phase in the company’s global management. At the time, KGM shared specific plans for its German market operations, including export strategy, mid- to long-term product plans, brand and marketing strategy, and sales networks.
The company’s push into Germany accelerated further last year. In April, KGM invited more than 50 local journalists and influencers to an Actyon launch and test-drive event in Germany, focusing on increasing brand awareness.
KGM’s locally focused marketing also continued in Korea. Last April, the company held a test-drive event for the Musso EV and Torres Hybrid and invited more than 20 dealer representatives from 11 export markets, including Turkey, Hungary and Germany. The move was seen as an effort to allow local sales networks to directly experience the vehicles’ strengths ahead of global launches and improve their marketing capabilities.
Experts say expanding exports is not a choice but a necessity for KGM. But they also warn that for higher sales to lead to qualitative growth, the company must continue investing in local infrastructure, including service networks.
“Right now, KGM has to make up for weak domestic demand through exports, so how well it performs in overseas markets will determine the company’s success or failure,” said Moon Hak-hoon, a professor in the Future Automotive Department at Osan University.
But Professor Moon added, “Sustainable growth will be possible only if the company goes beyond simply increasing sales volume and also invests resources in additional infrastructure, such as after-sales service centers and stable parts supply channels.”
-This article was translated by ChatGPT. (이 기사는 챗GPT가 번역했습니다.)
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