Jang Seob Yoon
Research expert covering South Korea
Commercial vehicles in South Korea - statistics and facts
The automotive industry in South Korea can be divided into two main categories: the passenger car market and the commercial vehicle market. While the passenger car market was very much a scene of lively competition, this was not necessarily the case for the commercial vehicle market. In contrast, the commercial vehicle segment was much more stable, both in terms of competing companies and the demand for such vehicles.
The usual suspects
As expected for the largest players in the domestic automotive market, Hyundai Motor Company and Kia Motors were the leading commercial vehicle manufacturers. The dominance of Hyundai Motor Group’s two companies was well reflected in the domestic unit sales of commercial vehicles. The global conglomerate had operations in the production of commercial vehicles such as vans, trucks, and buses in addition to their passenger car models.How did Daewoo Motors split into separate companies?
Now defunct, Daewoo Motors was once in the upper echelon of South Korea's corporate landscape as a part of the conglomerate Daewoo Group, even giving Hyundai Motors a run for its money as a fellow automaker. Unfortunately, its parent company ran into various troubles during the Asian financial crisis that hit South Korea in the late 1990s, and Daewoo Motors ultimately split into three different companies. Currently, the legacy of Daewoo Motors remains in the following three companies: the passenger car division GM Korea is a subsidiary of General Motors, the truck division is now known as Tata Daewoo Commercial Vehicle under the ownership of the Tata Group, and the bus division turned into Zyle Daewoo Bus with Young An Hats as its majority shareholder. However, as of 2022, Zyle Daewoo Bus is shutting down its business and is in the process of selling off its assets.Joining the party
Another company that was formerly owned by Daewoo Motors was SsangYong Motor. The pickup truck produced by the South Korean automaker was its bestselling model out of its vehicle portfolio. In the van segment, Renault Samsung Motors also offered a competitive model for prospective buyers of commercial vehicles in South Korea. Nevertheless, these two companies were very much focused on the production of passenger cars rather than commercial vehicles. As electric mobility continues to gain a head of steam, ambitious newcomers such as Edison Motors have entered the race to provide electric commercial vehicles.
