Renault Samsung Motors Co., the South Korean unit of France's Renault SA, introduced a revamped SM3 small sedan aimed at customers opting for more-fuel-efficient vehicles amid high oil prices and the economic slump.
The new SM3 will go on sale locally in early July priced between 14 million won ($11,200) and 18 million won, the carmaker said in a statement today.
Demand for smaller cars in South Korea rose 18 percent in the first five months of this year, making it the only market segment that showed growth, according to the Korea Automobile Manufacturers' Association.
The new model will create "profit growth" for Renault Samsung, Chief Executive Officer Jean-Marie Hurtiger said. The carmaker will export the compact, probably under the Renault brand, although a final export plan hasn't been set, he said.
The SM3 is equipped with a 1.6-liter gasoline engine and the company may add a diesel version later depending on demand, said Renault Samsung, based in the southeastern port of Busan.
Renault Samsung will also continue selling the current generation SM3, which is exported under Nissan Motor Co.'s brand, mostly to Russia and the Middle East.
The company sold 57,757 SM5s, SM3 sedans and other models in the first five months of this year, 23 percent fewer than the same period in 2008, Renault Samsung said on June 1. Domestic sales slid 3.4 percent and exports slumped 52 percent.
