`J-200` of GM Daewoo

In an automobile industry, Hyundai has had a large lead on in the domestic finished motorcar industry. However, owing to a launching of GM Daewoo Auto & Technology (GM Daewoo Motor), there will be a severe competition between KIA and GM Daewoo for gaining the second place.

It is forecasted that the launching of GM Motor will shake the existing dominion gradually. The analysis says that there is time to spare until 2005 when GM Daewoo Motor configures the full line-up but there will be severe competition among companies after that.

▽Strategy of GM Daewoo Motor 〓 Including J-200(Project Name), MAGNUS 2500㏄, MATIZE 2003, three models will be launched for 2 months until the end of the year. Daewoo Motor has participated in the competition of domestic demand market, by launching the new typed MAGNUS and KALOS this year. J-200 is an ambitious work developed with GM from last year. It is estimated at the production of 13,000 cars per month. It will have severe competition with AVANTE XD of Hyundai Motor and SM3 of Renault Samsung.

Daewoo Motor will concentrate on the domestic demand market for a wile. It sets a goal of 20% increase in the market share, from the existing 10% (Field of motorcar). It plans a strategy to turn to profits in 2005 focusing the exports. Cho Su-Hong, the analyst of Dongbu Securities said “When Daewoo Motor applies the brand image and marketing of GM, it will have far-reaching effects on the domestic demand market.

▽Hyundai Motor & KIA Motors 〓 Such as Hyundai and KIA Motors, the domestic automobile companies have remained calm outwardly. It is because Daewoo is weak in the motorcar types which have high profitability such as a large car, SUV, Mini-Van. However, Hyundai Motor and KIA Motors have become tense because of a rapid advance of Renault Samsung which has launched SM Series. If Daewoo Motor joins in the market, it is no doubt that they become tense.

Renault Samsung also has been strained. It is because there are Avante XD of Hyundai and J-200 of GM Daewoo Motor as a competitor of SM3.

Kim Hak-Su, the analyst of Samsung Securities said “Because GM Daewoo Motor must pay attention to the production lineup construction of various car types, there will no big change in the domestic market share. However, it will bring the change in the domestic demand market after 2005. “

Kang-Woon Lee kwoon90@donga.com