November 24, 2024

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[THE INVESTOR] South Korea’s largest automaker Hyundai Motor will set up an assembly line to build the new subcompact SUV next year, according to news reports on Dec. 26. 

The carmaker will add new lines to its Ulsan plant where compact cars Accent and Veloster are being manufactured. 

The construction will begin in January for two months and estimated to cost around 220 billion won (US$183.22 million). 

Hyundai Motor’s compact SUV Creta

Once the assembly line is completed, Hyundai plans to build its new subcompact model -- identified only by the project name “OS” -- beginning as early as the first half of next year. 

The addition is part of Hyundai’s effort to beef up SUV production to expand its global market share next year. 

According to data released by the Hyundai Motor Group Automobile Industry Research Center, SUV is one of the fastest-growing automotive segments, recording a 9.8 percent yearly growth rate in the past 10 years here. 

Notably, subcompact SUV is thriving rapidly, which is expected to account for 19 percent of the total SUV market by 2020, up from the current 10 percent. 

The “OS” will mostly target developed countries, including the US, Europe and its home turf, as part of Hyundai’s all-out effort to strengthen its SUV vehicle lineup. The carmaker has already introduced compact SUV Creta, sold as ix25 in China, in some emerging markets, including India and Russia.

By Ahn Sung-mi (sahn@heraldcorp.com)