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November 03, 2009
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DFMK opened in September with an initial investment of 1 billion won ($843,000). The company was established with top officials in the auto import market in Korea. Dongfeng Motor will also make an investment in the importer. “The vehicles are 30 percent cheaper than Korean vehicles and will therefore be competitive with private entrepreneurs,” said Lee Chul-woong, a DFMK executive. “There will be no problem with getting technical certification from the Korean government because the vehicles were exported to markets in Europe and Singapore two years ago.” DFMK decided to import the truck and vans before importing the passenger vehicle because the sedans are yet not up to the standards set by Korean automakers in their interior and engine. The vans and the small truck will have a better chance in the market because private entrepreneurs with small operations prefer trucks and vans with lower prices and higher quality. “The Chinese imports will have a great chance if the price is right in the Korean market, which is currently dominated by Hyundai Motor and its affiliate Kia Motors,” said Lee Nam-seok, business management professor at Chung-Ang University. The primary competition for Dongfeng’s one-ton truck is the Hyundai Motor Porter. The Chinese truck is expected to be higher in price than the Porter by 30 percent or more. The Porter retails for between 13 and 15 million won, and DFMK is planning to sell the Dongfeng truck for between 8.9 million and 11 million won. DFMK hopes to sell an average of 1,000 trucks every month and will increase its monthly target to 1,500 units in 2011. By Kim Tae-jin [ojlee82@joongang.co.kr] |
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