Thursday, January 21, 2010

Subaru plans to start selling cars in South Korea

The sixth largest carmaker in Japan, the Subaru announced it will start selling its cars in South Korean market in April. A subsidiary of Fuji Heavy Industries, which was founded back in 1958, will be operated by Subaru Korea.

At the beginning, the company will offer three vehicles including the Legacy mid-size sedan, Outback crossover vehicle and Forester SUV. The company revealed it plans to secure dealerships with maintenance capabilities in the major cities such as Seoul, Busan, Gwangju and Bundang, while later it may expand to other smaller cities.

Sales projections for the first year have been set at a very modest 600 units. Out of 600 vehicles sold, half are set aside for the sedan, and the remainder is divided equally between the Forester SUV and Outback crossover.

Prices have not been released yet and will be announced closer to the launching date set for April 2010.

With every new entry onto Korean market, Hyundai is facing stronger competition. Yet, the Korean largest automaker is confident it can retain more than 50 percent market share in 2010.

P.S. Mitsubishi ASX, which has made its unofficial debut yesterday, is rumored to enter Korean auto market sometime next year to challenge Hyundai's new Tucson and Kia's upcoming Sportage replacement.

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