Shanghai, November 3 (Gasgoo.com) Chinese vehicles will be exported to South Korea next year for the first time, the JoongAng Daily reported today. Trucks and vans will be exported before passenger cars.
Dongfeng Motor Group, the third largest automaker in China, signed a contract with Dongfeng Motor Korea (DFMK) to export the vehicles. DFMK will sell four models in the S. Korean market: a one-ton truck, a commercial minivan and a six- and nine-passenger van from April 2010.
"The vehicles are 30% cheaper than Korean vehicles and will therefore be competitive with private entrepreneurs," said a DFMK executive, adding that these models, exported to Europe and Singapore two years ago, have no problem getting technical certification from the Korean government.
DFMK decided to import the truck and vans before importing sedans (which are yet not up to the standards set by Korean automakers in the interior and engine). Private entrepreneurs with small operations prefer trucks and vans with lower prices and higher quality.
"The Chinese auto 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 a local expert.
DFMK was launched in September with an initial investment of 1 billion won ($843,000) by Korea's auto import market leaders. Dongfeng Motor will also invest in the Korean importer.
