GM Korea's Trax Crossover is seen in this undated file photo. Korea Times file
Industry officials on Wednesday urged General Motors (GM) Korea to boost local sales by introducing more models to its lineup amid lingering fears of the carmaker's possible exit from the Korean market.
According to company data, the number of vehicle sales to local customers saw a significant decline of 35.9 percent, dropping to 24,824 units in 2024.
This is in sharp contrast with the carmaker's total auto sales, which includes export figures. GM Korea sold more than 499,000 vehicles domestically and internationally, up 6.7 percent during the same period.
Industry officials noted what is widely considered an “insincere” sales strategy adopted by the local subsidiary of the U.S. carmaker.
“The company looks to utilize Korea as a key export base for its strategic SUV models, but has not taken any steps to address falling domestic sales largely due to lack of diverse vehicles in its lineup,” an official from the local auto industry said.
GM Korea's two strategic export models are the Trax Crossover and the Trailblazer, both of which are manufactured in Changwon, South Gyeongsang Province, and Bupyeong District, Incheon, respectively.
The company introduced only one new vehicle — the Colorado pickup truck — for the Korean market last year.
The decline in domestic car sales is largely attributable to the scarcity of new models in its lineup, according to the official.
“This is why the carmaker is mired in continuous rumors of potential pullout from the local market,” the official said.
The rumors continue to resurface, as the company has, in recent years, shut down multiple production lines here and accepted voluntary retirement for its employees.
While GM Korea focuses on boosting exports, the carmaker's major competitors are expanding their local market share.
Last year, Renault Korea achieved a major sales rebound, driven by the decent success of its Grand Koleos SUV, surpassing GM Korea in total vehicle sales for 2024.
Earlier, the local subsidiary of the French automaker unveiled its strategy to boost local sales by launching the so-called "Aurora project," under which the carmaker will make investments worth more than 1.5 trillion won ($1.02 billion) by 2027 and launch a group of its diverse hybrid and electric vehicles here.
Audi Korea, which faced a continued sales decline in recent years, also expressed hopes to reverse the trend by launching a record number of 16 new vehicles this year for the Korean market.
“There stands a possibility for any carmaker to withdraw their business from overseas markets if they only play a role as a base for exports,” another industry official said.