"Not Those Koreans!" Why New KGM Cars Are Failing in Russia
According to customs data, 3.9 thousand new Korean KGM cars were imported to Russia in 2025, but only 95 cars were registered (64 in April and 31 in May). The expected sales slump was predicted by Novye Izvestia back in late February.
Information about South Korean KGM's plans to enter the Russian market not through unofficial parallel import channels, with all the attendant problems in the form of the lack of an official dealer network, warranty service and availability of spare parts, but through legal means, via a licensed importer, was made public in November last year. At that time, the Russian automotive press unanimously admired the courage of the Korean manufacturer, which was not afraid of possible secondary sanctions.
But soon the cost of this daring initiative and the models of cars became known, which turned out to be far from revolutionary.
The Korando crossover turned out to be twice as expensive as the Haval Jolion. Photo: KGM
The Korando crossover is not a “fresh” 2019 model, which falls into the same class as the Changan Uni-S and Haval Jolion models. Its length is 4452 mm, the trunk volume is 551 liters under the shelf or 1248 liters with the rear row folded. Under the hood is a standard duet of a 1.5 turbo engine (163 hp, 260 Nm) and a six-speed Aisin automatic. The basic Korando with front-wheel drive costs from 4,390,000 rubles . The Chinese Haval Jolion can be purchased half as cheap.
Torres midsize crossover: everything is good, but the price is off the charts. Photo: KGM
The mid-size crossover Torres, which debuted in 2022, competes in size and consumer qualities with the Haval F7 and Chery Tiggo 8. Torres is powered by a pair of 1.5 turbo engine (163 hp, 260 Nm) and a six-speed Aisin automatic transmission.
Three trim levels are offered in Russia: City with front-wheel drive, Dream with two types of drive to choose from, and Icon with all-wheel drive. The initial KGM Torres costs from 5,150,000 rubles, while the Haval F7 costs from 2,569,000 to 3,649,000 rubles. The difference of two million rubles or more is genuinely surprising.
The Rexton sits at the top of KGM's model range. Photo: KGM
The top line of KGM includes Rexton, the most expensive SUV in the E-segment. It is equipped with a rigidly connected all-wheel drive (part-time), a reduction gear and a solid rear axle. The main competitors in the Russian market will be Oting Paladin, a copy of Nissan, and Haval H9. Rexton for Russia will be available exclusively with a 2.0-liter gasoline turbo engine with a capacity of 225 hp and a torque of 350 Nm. The starting price will be 6,790,000 rubles.
Comparing the Rexton to Chinese cars at this price is pointless. For this amount, Chinese manufacturers will offer a huge number of luxury options, including hybrid and electric versions, which creates a significant variety of choice.
But the main thing is that today's Russian car enthusiasts approach the choice of a car by weighing all the pros and cons of the offers from car dealerships.
If you look into it, the main competitors of the KGM Tivoli are the long-known Chery Tiggo 4, as well as the Geely Coolray/Belgee X50. The price of a car assembled in Belarus starts, for example, from 1,890,000 rubles, which is almost half as much as what is asked for the Korean novelty - from 3,590,000 rubles. The updated Chery Tiggo 4, made in China, can be purchased from official dealers at a price of 1,666,000 to 2,380,000 rubles (excluding discounts).
It's funny that in Russia, at a plant in the Leningrad region, they still produce Hyundai Creta under the name Solaris HC, which is a direct analogue of Tivoli. Its cost varies from 2,213,000 to 2,873,000 rubles.
However, let's say there are customers willing to support a new Korean car brand that starts its operations with models inherited from the bankrupt SsangYong.
The KG Mobility (KGM) brand is familiar only to connoisseurs, while for most consumers it will be perceived as one of many Chinese automakers. The new KGM brand still has a long way to go to achieve the level of trust that Hyundai and Kia enjoy. It will take years of hard work to achieve the same market position.
In addition, the brand bears a negative imprint of the past, associated with the controversial reputation of the parent company SsangYong.
Faced with a sales crisis, dealers have already begun to sharply reduce their offers, especially for 2024 cars. The size of the direct benefit reaches as much as 750 thousand rubles. However, this measure did not lead to a noticeable increase in sales.
Russians still value well-known brands, but are distrustful of new ones. Alas, it is impossible to overcome inertia at once, taking advantage of some kind of deficit. It will be necessary to promote a new car brand for a long time and at a high price, or reduce the appetites of sellers to the level of similar Chinese brands.
newizv.ru
