KG Mobility (003620), which has been accelerating its export expansion, has declared its entry into the U.S. market. Unlike Hyundai Motor (005380) Group, KG Mobility has focused on niche markets such as Turkey and Southeast Asia, but has now decided to significantly expand its market reach by competing head-on in the United States, the world's largest automotive market.
According to automotive industry sources on the 3rd, KG Mobility recently held a CEO investor relations session hosted by CEO Hwang Ki-young, announcing plans to develop overseas markets including North America by 2030. To achieve this, KG Mobility will develop products tailored for the North American market.
This marks the first time KG Mobility has officially announced its North American market entry. As recently as last year, KG Group Chairman Kwak Jae-sun stated that "entering the U.S. market is realistically very difficult, so we are not considering it at the moment." The strategic shift comes as KG Mobility recognized limitations in building a global strategy while excluding North America, given its sheer market size.
The United States sells 15 to 17 million new vehicles annually, accounting for 17-18% of the global automotive market, with most major global manufacturers already present. KG Mobility had previously employed a "niche strategy" focusing export marketing on select emerging markets such as Turkey, but concluded that U.S. market entry is essential to meaningfully and sustainably grow overseas exports.
The growing polarization of the U.S. automotive market is also cited as a reason for KG Mobility's accelerated entry. The Korea Automotive Research Institute analyzed that "this year, the U.S. market will see consumer polarization amid solid growth, highlighting the need for strategic corporate responses." The institute noted that while growth remains solid, inflation-driven polarization in consumer purchasing power could create strategic opportunities in both premium and entry-level segments.
KG Mobility interprets recent relaxation of U.S. environmental regulations as creating space to enter the market with lower-priced models compared to global competitors.
Industry observers expect KG Mobility to utilize the "KD (Knock-Down)" method, exporting vehicles as parts for local assembly. This approach eliminates the need for new production lines, reducing fixed costs while providing freedom from tariffs and local regulations. KG Mobility already employs KD strategies in Vietnam, Saudi Arabia, Indonesia, and Myanmar.
With its North American market entry, KG Mobility has set targets of 200,000 unit sales and an export ratio exceeding 60% by 2030. The revenue target is set at 7.3 trillion won. Last year, KG Mobility sold 110,535 units and recorded revenue of 4.3036 trillion won. For this year, the company aims to sell 137,290 units, a 24.2% increase from last year.
To achieve these goals, KG Mobility plans to expand its eco-friendly vehicle lineup centered on SUVs. The company plans to launch seven new models with eco-friendly powertrains by 2030.
A collaborative strategy for securing technological competitiveness will also be pursued. KG Mobility is jointly developing next-generation battery packs based on 46mm cylindrical battery cells with Samsung SDI for application in future EV lineups. To reduce development costs and timelines in electrification, the company will strengthen its competitiveness through partnerships with Chinese companies including BYD and Chery.