Seoul - Toyota Motor Korea has begun selling four flagship models in South Korea aimed at cracking a market dominated by native car makers Hyundai and Kia. The models are the Prius sedan, the Camry sedan and hybrid sedan, and the RAV4 sport utility vehicle. They are priced at 34.9 million won (30,000 dollars) for the Camry, 45.9 million won for the Camry hybrid, 37.9 million won for the Prius and 32.1 million won for the RAV4.
It remains to be seen whether Toyota's Camry can repeat its success in South Korea after selling 12 million units globally. Its main competitor in South Korea will be Hyundai's Sonata, which sells for between 32 and 36 million won.
Toyota Korea says it has modest goals of selling about 500 units of these four models a month in South Korea this year and 700 units a month in 2010. However, a South Korean newspaper quoted a dealer as saying at least 15,000 units have already been booked in the past few months.
Market observers generally agree that these launches won't impact meaningfully on Hyundai and its affiliate Kia Motors. These two carmakers take up at least 70 per cent of the one-million-unit automotive market in South Korea. Previously Toyota Korea was selling only Lexus models, selling around 6,000 models in 2008.
South Korea has been a small but lucrative testbed to sharpen the competitiveness of Hyundai but the company must now relax its grip on the home market as the Seoul government is lifting restrictions on foreign-made cars under the free trade deal to speed up the South Korean carmaker's drive into the US, Europe and Asia.
"The Toyota launch could be like a butterfly that flaps a wing (in Korea). Its initial impact is marginal but it could lead Toyota to make a phased inroad into the South Korean niche market," said Kim Pil Soo, a professor at Daelim University, in an interview with DongAh Ilbo newspaper.
Observers say that Camry models have few frills while Korean consumers tend to prefer luxury and a premium image when they consider buying Japanese vehicles. "Besides, Korean carmakers have a formidable network of sales and after-sales service," said one dealer of imported vehicles.
Still, the Camry could be a reasonable alternative to Hyundai's Sonata. "If you want a reliable and durable premium value that has been globally proven the Camry could be an attractive alternative to the Sonata for South Koreans," said Professor Kim Pil Soo.
