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● EV3 leads the electric vehicle market in April with great value, dominating the compact car segment.
● The Palisade Hybrid explodes in popularity in the large SUV market thanks to its fuel efficiency.
● Consumer choices are increasingly polarized, favoring compact and large vehicles amid economic downturns.
Hello.
I’m Uniji, an automotive influencer (YukaPost).
As the economic downturn continues, the domestic automotive market is clearly experiencing a polarization in purchases. Cost-conscious consumers are gravitating toward reasonably priced compact cars, while those who prioritize luxury features and performance are increasingly opting for larger vehicles. Notably, key models like the EV3 and the Palisade are leading this trend, capturing significant attention.
Why are compact and large vehicle sales surging?
Why are compact and large vehicle sales surging?
According to data from Kaizu Research Institute on the 11th, sales of compact and large vehicles surged significantly in April compared to the same period last year. Compact car sales reached 16,786 units, a 50.7% increase, while large vehicle sales hit 19,807 units, up 48.6%. Analysts attribute this surge to the prolonged economic downturn, which has emphasized the importance of price and performance in vehicle purchases. The rise of compact electric SUVs like Kia's EV3 and the flagship large SUV Palisade, which combines gasoline and hybrid powertrains, also plays a significant role in this trend.
The EV3 dominates the compact car market.
The EV3 dominates the compact car market.
In the compact car segment, Kia's compact electric SUV, the EV3, has shown remarkable performance. Launched in July last year, the EV3 quickly expanded its market share due to its excellent efficiency and reasonable pricing. In April, it sold 3,388 units, marking a 34% increase from March, making it the top-selling electric vehicle in Korea. The EV3 effectively targeted demand for 'value-for-money' electric cars. It is Kia's third dedicated electric vehicle model, following the EV6, which debuted in 2021, and the EV9, a large electrified flagship SUV that launched in 2023. Notably, around 40% of buyers in their 30s are drawn to the EV3, which offers reasonable pricing and a variety of convenient features. The starting price for the standard model is approximately $3,000 (3.995 million KRW), while the long-range model starts at about $3,300 (4.415 million KRW). Considering government and local subsidies, the effective purchase prices range from the low to mid $23,000s for the standard model and the mid to high $25,000s for the long-range model. Additionally, the EV3 incorporates various cutting-edge electric vehicle technologies, including i-Pedal 3.0, a smart regenerative braking system 3.0, and next-generation thermal management systems.
The large vehicle market also sees increased sales, led by the Palisade Hybrid.
The large vehicle market also sees increased sales, led by the Palisade Hybrid.
Meanwhile, in the large vehicle segment, Hyundai's 'The All-New Palisade' has shown strong performance. This model, which underwent a full redesign after its launch in November 2018, features luxurious design and rich convenience specifications that have captured consumer interest. In April alone, the total sales of The All-New Palisade reached 6,682 units, setting a record for the highest monthly sales ever. Analysts attribute this success primarily to the significant release of the hybrid model. Hyundai began delivering the Palisade Hybrid in April, selling 3,526 units in just one month, accounting for over half of total sales.
The Hyundai All-New Palisade Hybrid utilizes the new hybrid system 'TMED-II' to provide stable electric motor assistance during high-speed driving while minimizing energy loss. Its fuel efficiency has improved by over 30% compared to the existing gasoline model, with a combined fuel efficiency rating of 14.1 km/L. Consequently, while there has been consistent consumer demand for hybrid models in the large SUV market, which typically has lower fuel efficiency due to their heavier body, the introduction of the Palisade Hybrid has rapidly absorbed previously pent-up demand, especially as domestic brands lacked suitable options.
The pricing for the All-New Palisade 2.5 Turbo Hybrid model varies by trim level, based on an individual consumption tax rate of 3.5%. The prices are as follows: 9-passenger ▲Exclusive $3,700 (4.982 million KRW), ▲Prestige $4,200 (5.536 million KRW), ▲Calligraphy $4,700 (6.186 million KRW); 7-passenger ▲Exclusive $3,800 (5.068 million KRW), ▲Prestige $4,200 (5.642 million KRW), ▲Calligraphy $4,800 (6.326 million KRW).
Will the polarization in vehicle purchases continue?
Will the polarization in vehicle purchases continue?
The automotive industry anticipates that the increase in sales of compact and large vehicles is unlikely to be a short-term phenomenon and will likely persist for some time. Factors such as high oil prices and interest rates significantly influence consumer choices, and the ongoing release of new models is expected to accelerate this trend. We appreciate your valuable feedback in the comments, and we hope you have a joyful and happy day as we conclude this post.
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