SsangYong Motor, the South Korean unit of Indian carmaker Mahindra & Mahindra, launched a premium large-size SUV dubbed the G4 Rexton last week, seeking to cement the company as an automaker that specializes in SUVs.

Competition in the local SUV market will further heat up as Hyundai Motor is slated to launch its first small-size SUV, the Kona, this summer.

“Local and foreign automakers are rolling out a wide range of SUVs on rising demand. The launch of SUVs, however, hold greater meaning for local automotive firms that are looking for momentum to turnaround the poor first-quarter performance,” according to analyst Kwon Soon-woo of SK Securities.

SsangYong Motor said the G4 Rexton is equipped with a total of nine airbags, the most among premium large-size SUVs.

A quad frame platform has also been applied to the G4 Rexton for the first time among cars worldwide. The quad frame is made with ultrahigh-tensile strength giga steel rated at 1.5 gigapascals, developed together with Posco, South Korea’s leading steel producer.

The automaker posted an operating loss of 15.4 billion won ($13.5 million) between January and March this year.

The company set this year’s sales target for the G4 Rexton at 20,000 units, higher than the 15,059 units sold by its rival Kia Motors’ large-size SUV, the Mohave.

The Mohave is currently the leading model in the local premium large-size SUV market.

Local automakers are jumping on the SUV bandwagon with an aim to boost sluggish sales.

A total of 454,669 SUVs were sold here last year and accounted for 33.8 percent of the auto market, according to the Korea Automobile Manufacturers Association. SUVs took up only 19 percent of the auto market in 2011.

Hyundai and Kia Motors are to roll out small-size SUVs this year, seeking for momentum to end the recent series of damaging events that dealt a blow to the companies’ sales.

Kia Motors’ operating profit plummeted 39.6 percent on-year to 382.8 billion won between January and March this year, the company said.

In the cited period, Hyundai Motor posted 1.2 trillion won in operating profit, down 6.8 percent on-year.

Kia Motors is planning to introduce a new B-segment model this year, though the name of the model, along with when and where it will be launched have not been decided, Kwon added.

According to KAMA, sales of compact SUVs totaled 110,621 units last year compared to 11,998 units in 2013. They are projected to record sales of over 120,000 units by 2022, it added.

SsangYong Motor’s flagship Tivoli currently leads the local small-size SUV market. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)