Chinese CUV Gets Enthusiastic Reception in Korea

China’s BAIC Motor adds insult to injury in Korea, where its distributor announces plans to import an additional 320 units of the Kenbo 600 compact CUV by the end of June.

The model sold out rapidly in just two weeks when an initial 120 vehicles were imported to Korea in January.

In China, BAIC competes against the Korean-branded vehicles of its affiliated Beijing Hyundai joint venture. Korean vehicles are being boycotted in China’s domestic market, to BAIC’s advantage.

The boycott, inspired and encouraged by the national government, comes in retaliation for South Korea’s deployment of a missile defense system capable of scanning Chinese missile activity.

However, there seems to be no backlash against Chinese vehicles being sold in Korea.

According to China-Korea Motor, which imports BAIC’s Kenbo 600, its numbers may be small but consumer demand is outstripping supply. Imports into Korea will be increased more than 50% beginning in June.

The Kenbo 600 sells in China as the Kenbo S6. It launched in 2016 as BAIC’s first upscale passenger vehicle.

It sells in Korea in two versions, a base model priced at 20 million won ($17,600) and a luxury edition costing just 1,000 won ($900) more – 21 million won ($18,500). China-Korea Motor notes virtually 100% of orders are for the luxury model.

The price for both trims is about 5 million won ($4,400) lower than competing Korean SUVs in their class.

When BAIC announced its entry into Korea in January, many analysts voiced skepticism. They dismissed it as a big utility vehicle with a small engine, implying subpar performance.

They also suggested safety concerns, and predicted generally sophisticated, discerning Korean consumers would shun inexpensive Chinese vehicles. Another drawback was a supposed lack of sales and service outlets.

But when the Kenbo 600 broke cover in Incheon in January it shattered all of those concerns.

According to the China-Korea Motor website, the small engine turns out to be a turbocharged 1.5L, 145-hp mill coupled with a CVT transmission.

The Kenbo 600 body contains 60% ultra-high-strength steel and the vehicle was one of the five highest-rated performers in China New Car Assessment Program crash tests.

The CUV has antilock brakes, electronic stability control, lane-departure warning, hill assist, reverse-camera safety system and six airbags.

Interior features include electric adjustable heated driver’s seat, steering-wheel-mounted audio controls, one-touch power windows front and rear, 8-in. (20-cm) liquid-crystal display console, 6-speaker audio system and USB ports.

The Kenbo 600 rides on 17-in. alloy wheels and comes with a fullsize spare.

China-Korea Motor says it has 80 service outlets in South Korea.

The importer also reiterates a BAIC subcompact CUV will be offered before year-end. It will be priced 6 million won ($5,300) lower than the Ssangyong Tivoli, Korea’s best-selling small CUV. It will compete against the full range of Korea’s subcompact CUVs, including the Hyundai Kona, Kia Niro and GM Korea’s Trax.

BAIC officials also say the automaker plans to introduce an electric vehicle in Korea soon.

Last November BAIC launched sales of its first commercial vehicles in Korea, the CK minivan and the CK minitruck.

BAIC’s Korean strategy avoids head-to-head confrontation with any of the five domestic automakers. It is finding niches where its high-quality, low-priced vehicles can take root and hoping the imports will flourish once the brand gains acceptance.

China-Korea Motor announced it was increasing imports the same day South Korea elected Moon Jae-in as its new president.

Moon has vowed to initiate government programs to boost the economy and to take measures that will put controls on Korea’s major conglomerates. One of them is Hyundai Motor Group, which has controlling ownership positions in automakers Hyundai and Kia and more than 50 automotive-oriented affiliates, including captive parts maker Hyundai Mobis and Hyundai Steel.