The Hindu Business Line : True to the soul of a motor show

AS MOTOR shows go, this may not have been in the same league as the ones in Geneva, Frankfurt or Paris, but the Seoul Motor Show, held between April 30 and May 8 in the South Korean capital, did have its significance. For one, this was the first time that both Korean and foreign manufacturers were exhibiting their products in the same show. Till now, the two have held fairs separately, an indicator of how the Korean automobile market is segmented and also of the underlying tensions between domestic and foreign manufacturers. That the two got together on the same platform does not mean that things are any better now.

Imported car brands such as Mercedes-Benz, BMW and Lexus are slowly getting a toehold in the top end of the Korean market, something that Korean manufacturers are trying to counter by launching luxury sedans of their own.

From the Renault stable.

The South Korean automobile market, whose domestic car sales accounted for about 8,58,000 units in 2004, is dominated by Korean brands. The Hyundai-Kia automotive group is the largest with a market share of almost 70 per cent. The others are General Motors-Daewoo, Ssangyong and Renault-Samsung.

According to the Korea Automobile Manufacturers Association, the overall automobile production during 2005 was 35,50,000 units, a 3.8 per cent growth over the previous year. Domestic sales were estimated at 11,50,000 units, a 4.5 per cent increase over the previous year. Exports too are expected to grow marginally, by 3.4 per cent and reach a figure of 24,00,000 units or worth $33.6 billion.

It is in this backdrop of a generally sluggish domestic demand that the Seoul Motor Show was held, at the new Korea International Exhibition Centre. Auto shows of this kind serve different purposes for different people. One, it is an occasion for business-to-business contacts — component manufacturers showcasing their products for the benefit of automobile makers. For auto-makers themselves it is an opportunity to display their latest products or concept vehicles and for the general public it is a chance to touch and feel a complete range of cars. Besides, such events spawn large businesses in the services industry — restaurants, shops selling memorabilia and the like.

Envy on wheels... the Rolls-Royce.

Apart from all the Korean manufacturers, there were leading global manufacturers such as Mercedes-Benz, Rolls-Royce, Ford, General Motors, BMW, Honda, Jaguar. Tata Motors too had a stall displaying the Indica, the Indigo, the Indigo station wagon, and the Xover, a crossover vehicle.

Higher horse power trucks made by Tata Daewoo Commercial Vehicle Co, which are likely to be launched in India this financial year, were also on display.

The Seoul Motor Show had all the razzmatazz associated with such events — models posing in front of sleek sedans, fashion shows, huge crowds lining up to collect memorabilia and what not. There were a number of concept cars — showcasing technology that may or may not get into production at all.

Hyundai's HED concept car.

Hyundai Motor Company, Korea's leading automobile manufacturer, had three — the Portico, HED-1 and HCD-8 — essentially to showcase the company's design capabilities. Portico — a crossover multi-purpose vehicle — has been created by Hyundai's Namyang Design and Technical Centre, while the HED-1 aimed at Europe's B-segment MPV market, was styled and built at the company's European design and technical centre in Russelsheim in Germany.

The HCD-8, a next generation sports coupe, was the brainchild of Hyundai's design team at its California centre based in Irvine.

According to automobile industry experts, in Korea the real battle is in the luxury car segment — priced at $50,000 and more — with major global brands such as Mercedes, BMW and Lexus muscling in. To counter this, the domestic manufacturers too are coming up with their own versions — Hyundai has the Grandeur and the Equus; General Motors Daewoo the Statesman; and Ssangyong Motor, a new Chairman sedan. Renault Samsung Motors has come out with SM7 and SM5 sedans.

Pictures by the author