High performance range –BenzSales volume – VolvoEconomic class – Iveco According to Ministry of land and transportation, newly registration numbers for trucks in Korea on 2018 is announced. In Korean market, 7 brands have been compete for struggle including 2 domestic brands. (Hyundai, Tata Daewoo)Tractor market in KoreaAll 7 brands are focusing on sales tractors. 6X2 model is dominate the market currently. Displacement is normally from 10L to 13L. ▶ 15~16L ⇒ Mercedes Benz, ‘Actros’ is the winnerMost highly price, and large size among the tractor, 15~16L range registered 187 units on 2018 and Mercedes sales 77 units. ▶ 12~13ℓ ⇒ Volvo ‘FH series’12~13L model is most popular range in market. 1,411 units are registered on 2018 and Volvo sales 486 units with ‘FH series’.▶ 10~11ℓ ⇒ Iveco ‘Straris’10~11L is economic class and registered 298 units on 2018. Iveco sales 101 units with 'Straris'.
Sales drop 22.9% than 2017Cargo truck: domestic↓, imported ↑Tractor: worst yearDump truck: worst year ever!‘Worst market ever!’ This is summary of commercial vehicle market for 2018. Most of model sales are decreased than other years and it can be hold even for 2019.Economic recession also effects on commercial vehicle market and frozen for purchasing demands. Sales on Mid-size and large size truck (up to 4.5t) on 2018drop almost 5,000 units compare with 2017 and it is lowest number since Euro6 emission is started in Korea.According to Ministry of land and transportation, new registration for mid-size and large size of commercial vehicle on 2018 was 19,013 units and it is 22,9% lower than 2017.Mid-size cargo truck: domestic drops more than importedFrom 4.5t to 7.5t, mid-size cargo truck registered 9,730 units on 2018 and it is less 19.5% than on 2017. Imported brands sales rate is better than domestic brands. Even drop rate is 7.3%, but it is raised 93.1% than on 2016 which imported brands start to sale on mid-size cargo truck.Consequentially, domestic brands make lowest numbers since 2015 and imported brands spread market share in Korea. Large size cargo truck: rise of imported brands even for recession marketUp to 8t, large size cargo truck registered 5,364 units on 2018 and it drops 14.8% than on 2017. Same as mid-size cargo truck, domestic brands are slumped than imported brands. Domestic brands sales rate dropped 22.1%.Tractor: drop keep on 3 years in a rowTractor registered 1,898 units on 2018 and it is less 14.8% than on 2017. End of last year, sales rate dropped more than early of 2018, it is expected keep on decreasing. Only Volvo keep sales over 100 units per a quarter of year. Dump truck: dropped half of sales rate, worst market everDump truck market has harsh times ever. Registration for dump truck on 2018 was 2,021 units. It is less than 50.1% on 2017. Some companies even offer special price for stock, but it could not help the situation. Especially for 25.5t dump trucks, recession is worst. It drops over 74.2% than on 2017.The reason for sales rate drops on dump truck has two points. Construction market is frozen and government control for dump truck numbers.
Same performance with Diesel modelExcellent safety and Fuel efficiency…reduction 20% of CO2Already sales on Europe…Charging Infra is needed in KoreaVolvo truck showed up his environmental-friendly solution, LNG(Liquefied Natural Gas) tractor ‘Volvo FH LNG’ in Korea.‘Volvo FH LNG’ truck has identical performance and driving distance with diesel engine model, even though can reduction 20% of CO2. Also can satisfied Euro 6 regulation. Adopted Volvo I-shift 12 speed automatic transmission and has 460 HP and max torque reach to 235kg.m.Engine is same mechanism with diesel so called ‘diesel cycle’. ‘Diesel cycle’ way is more efficient than traditional auto cycle method.Charging time also same as diesel truck and possible to operate 1,000km per a charge. Mr. Kim Young Jae, CEO of Volvo truck Korea, comments ‘Volvo truck tried to lead global commercial vehicle industry for last 90 years and there were always 3 points on focus: Quality, Safety and the environment.’ ‘This FH LNG truck also can devote to our value’.
Expand 2 more years of restriction for tour bus newly registration Estimated Excessive numbers from 4394~6876 unitsNewly registration of tour bus will be forbidden until 2020 for solve excess problems.Ministry of Land, Infrastructure and Transport announced period of forbidden will be extended for 2 more years. Also, Ministry announced other issues for safety of tour bus operations.
Strength price competitiveness and more efficiencyShorten model also will be release for special purpose ISUZU, one of the world famous commercial vehicle manufacturer, currently showed up new models for ISUZU ELF by adopt new 6 manual transmission.Curo Motors, exclusive dealership of ISUZU in Korea, currently announced new ISUZU ELF model which adopt manual transmission. According to variation, ISUZU ELF became an only model possible to develop from short and long size chassis on special purpose commercial vehicles. Manual transmission is more preferred to drivers because it can make more fuel efficient driving and powerful performance. Short body chassis model also has a convenient can turn in narrow alley in Korea. Curo motors also showed up another variation such as aluminum cargo box model and rear axle with air suspension model.
Volvo take 1st place for newly registration numbers in 12 cities of 17 cities in KoreaAnnual dump truck market requirements in Korea is normally 3,000~6,000 units per a year. It depends on construction market condition. Price per a unit is generally start from 150,000 USD to 250,000 USD.There are 7 brands compete in Korean market. According to Ministry for Land and transportation in Korea, newly registration of dump truck from January to September on 2018 was 1,276 units.Volvo has largest numbers as 504 units and Hyundai was 236 units.
6 cities, 30 units will be operated on 2019SPC also established for hydrogen charging stationHyundai will supply 30 units of hydrogen electric city bus to 6 cities of Korea including Seoul.According to contract, 6 cities will adopt hydrogen electric city bus from May of 2019 and will be finished before end of 2019. Seoul will operate 7 units. Beside of this deal, Hyundai will operate hydrogen electric city bus from this month to August of 2019 in Seoul for demonstration.Hyundai hydrogen electric city bus announced specification as below: 200kW of power, max speed is 92km/h and driving distance is 317km per 1 charge.SPC is also established for operate hydrogen charging station. 13 corporations including Hyundai make a contract for establishment and initial capital is 135 million USD. It named as ‘HyNet’.Hyundai currently focus on hydrogen commercial vehicles and made a contract with European market supply for 1,000 units of hydrogen electric commercial truck from 2019 to 2024.
Domestic brands trying to develop new bus models Hyundai start to develop double decker bus based on 1st floor model ‘Unicity’ Edison focus on mid-size ev bus to resist to Chinese modelDomestic bus makers trying to launching new model of buses against attack from imported bus brands especially Chinese brands. Currently, Because European and Chinese bus brands keep on launching new bus models in Korea and still, it’s numbers are slight, but it could be a huge threat in the future.■ Hyundai start to developing double deckerIn the large size bus market in Korea, Hyundai has a position of monopolistic position. Recently around capital area has rising demand for double decker city bus cause of increased transportation needs. Double decker city bus market has been dominated from European brands with MAN and VOLVO in Korea. Because there are no Korean bus brands in this market.It’s market size is about 100 units per a year. It is a niche market. Hyundai might can’t endure such a situation, they pronounced will developing new double decker bus model. Hyundai will modify from their popular 1st floor city bus model, ‘Unicity’. Hyundai will cooperate with government and will trial operation with prototype and if it is successful, they will spread double decker to tour bus and express bus market.Hyundai also pronounced this new double decker model can find a new market in abroad. Surely, they will try to knock abroad market with chassis because it is more easy to fit regional regulations.■ Edison motors will show up mid-size ev bus Edison motors, one of aggressively launching new ev buses maker in Korea, is preparing for mid-size ev bus model to against waves of Chinese buses launching in Korea. Edison motors pronounced they will launch mid-size ev bus for town bus for the 1st time among the domestic brands.So far, there is only one mid-size ev bus model obtained qualification of subsidy for ev bus from government is BYD’s ‘eBus-7’. Edison motors already showed up their prototype of 9M ev bus on Busan motor show on last June.■ TATA-Daewoo find new way from the bus marketTATA-Daewoo is one of truck manufacturer in Korea and owned by Mahindra group, India. Currently TATA-Daewoo is focus on developing mid-size low floor bus cooperate with Korean government. Korean government want to establish standard model of mid-size low floor bus for the public transportation and already carried out trial operation with TATA-Daewoo’s new model. It is operated by diesel fuel and it might has some issues because latest circumstances are more focus on green vehicles such as ev vehicles.
Dropped sales for Dump and mixer truck...67% decreased compare to August 2017Strict regulation for business license plate…trade is forbiddenPremium for license plate for dump truck is doubled up less than 2 monthsPlunged, as the word itself, sales for dump and mixer truck is rapidly decreased on August. On 2016, Dump trucks sales was booming and since then, sales records keep 230 units per a month by average until July. But, on August 2018, dump truck sales records make only 82 units. Mixer truck sales also decreased as same as dump truck. Why?On 2016, Dump and mixer truck demands were go crazy. Sales increased from 3,000 units to 6,000 units by annual. On August 2018, it also changed dramatically, but it’s direction is going to decreased. This time, government is making the issues.■ Dump truck sales going 230 units to 82 units According to statistics from Ministry of Land and transportation, new registration for dump and mixer truck on August was 134 units. It is less than a half records compare with monthly average from January to July on 2018. It drops in a months.■ Government controls supply, market is freezingCurrent situation is leaded by government intervention. From 1st of August, administration strengthen the registration protocol for dump, mixer and concrete pump trucks.So far, it was possible to sale vehicles and license plate in separately. But from August, if someone buy dump truck for personnel purpose and change to business purpose and want to buy license plate for business, previously registered vehicle which attached business license plate must be scraped or exported.According to change of rules, premium for license plate for business is increased and also hard to find out vehicle which suitable conditions possible to remove business license plate.On market, it is recognized price of business license plate for dump truck is increased over doubled up. And it is more hard to get available license plate. Relatives said “government want to control number of dump trucks which is too much in market. But this is unfair policy because it is against the rules of economy order.”■ Side effects, conflict of marketIt is understandable to government’s decision on some points. But there are some side effects by policy. This policy makes hard to join the new player on dump and mixer truck market. And it makes reflect benefits to preexisted operators. Also, as hard to get business license plate, illegal business could occurred with personnel license plate ad it has risk for harm the market order.
8 brands struggled on market, Chinese brands has advantages so farBYD and Zhongtong make significant results, but with some issues(Hyundai, 'Elec-city')Seoul city will introduce EV bus on city bus lines with 29 units before end of this year and suppliers are also have been decided. Hyundai(14 units), Edison motors(5 units) and Higer(10 units) is the blessed manufacturers and those EV buses will be operated on Seoul city by 4 city bus lines.Seoul city’s adoption for EV bus will be a signal to other local governments and it is expected to spread of EV bus in Korea widely. ■ 51 units of EV bus is registered until July of 2018. Expected over 100 units will be registered before end of 2018 According to confirmed sources, 51 units of EV bus is registered until July of 2018. Jeju and Kimpo city has largest number as 20 units each.Seoul city will adopt 29 units before end of 2018 and Incheon will adopt 10 units. Other local governments also have plans to adopt EV bus before end of 2018.If plans are successfully carried out, almost 100 units of EV bus will be registered in Korea on 2018.(HIger's Korean model, 'Hypers')■ Suppliesr, who is laughing? 41 units of EV bus were Chinese brands among the 51 units of registration. Daewoo, one of the famous domestic brand, has zero records and it is shocked because Daewoo is No2. Bus manufacturer in Korea and they had been sales lot of diesel buses until now. Hyundai and Edison motors also have some meaningful sales records, but it could not satisfy their reputation. Foton is one of the earliest launching brands in Korea. Recently has some issues with dealership in Korea with various corporations. They sales 4 units to Gangneung city, but there is no sales record on 2018 so far. Higer sales 2 units to Changwon city and they also they have the preference on Seoul city with 10 units. It is significant signal because they will be operated on capital city. ■ BYD, Zhongtong have some issues Most largest sales records is going to BYD and Zhongtong with 20 units each.It looks like successful numbers, but both companies have some issues. BYD sales Jeju with eBUS-7(15 passenger EV bus) for 20 units on April. But after that, they continuously failed to selected on competition such as Incheon, Daejeon and other cities. Even for Daejeon, BYD selected for test operation brands, but recently it is canceled with unclear reasons. Zhongton is not so famous brands so far in Korea. Zhongtong has been made sales records only one bus company, Sun-jin in Kimpo city.It’s Korean dealer company has history with other Chinses brand, Evic. It also sold only by Sun-jin. Yet, Zhongtong is unproved on Korean market. (BYD's famous model, 'eBUS-12'. Yet, has zero sales records in Korea)■ Who will be the winner?Currently, 8 brands are struggled in Korean market, but so far, there is no winner showed up.Relatives expect after Seoul city adopt of EV bus and watched reliability and functional performance of buses, other local governments will be made a decision.