Renault Samsung to Produce Nissan-Branded Cars, Expand Product Line in South Korea

Strategic Insights -

Renault Samsung Motors Co., South Korea's smallest carmaker, has announced plans to produce its compact cars under the brand name of Nissan Motor Co. for exports from 2006. The decision was revealed by Renault Chairman Carlos Ghosn, who also stated that the company will roll out a sports utility vehicle (SUV) in 2007 to increase its market presence in South Korea. The SM3 compact sedan, one of Renault Samsung's flagship models, has sold 99,288 units since its launch in the second half of 2002. Ghosn emphasized the significant contribution of Renault Samsung to the South Korean automobile market, which has grown to become the seventh-largest market for the Renault Group, with a 42.9% increase in sales compared to the same period last year.

Key Takeaways:

  • Renault Samsung will produce Nissan-branded SM3 compact cars for exports from 2006, with an estimated 30,000 units to be produced annually.
  • The company will also introduce a sports utility vehicle (SUV) in 2007 to expand its product line in South Korea.
  • Renault Samsung has sold 99,288 units of the SM3 sedan since its launch in the second half of 2002.
  • The company is 70-percent owned by Renault SA and sells most of its cars locally.
  • Renault Samsung has contributed significantly to the growth of the South Korean automobile market, with a 42.9% increase in sales compared to the same period last year.
  • As of October 2005, Renault Samsung sold around 100,000 cars, making it the seventh-largest market for the Renault Group.

Statistics:

  • 30,000: Estimated number of Nissan-branded SM3s to be produced annually from 2006.
  • 99,288: Number of SM3 sedans sold since its launch in the second half of 2002.
  • 42.9%: Growth in sales of Renault Samsung compared to the same period last year.
  • 100,000: Number of cars sold by Renault Samsung as of October 2005.
  • 2002: Year in which the SM3 sedan was launched.
  • 2006: Year in which Renault Samsung will start producing Nissan-branded SM3s for exports.
  • 2007: Year in which Renault Samsung plans to introduce a sports utility vehicle (SUV) in South Korea.

Sources:

  • (Yonhap)
  • Asia Pulse