“Will keep the promise to climb to the third place in domestic market by 2016”
Renault Samsung Motors’s SM5 is aiming for a turnaround in the domestic market with a design change and the application of a doughnut-shaped LPG tank. The company’s strategy is to improve sales performance by extensively targeting not only the passenger vehicle, but also the taxi market.
Renault Samsung Motors held a press conference at the Some Sevit in Banpo-dong, Seoul on the 5th and announced its plan to release a facelift model (partially changed model) of SM5 ‘SM5 Nova.’ SM5 Nova will be released in four power train models, such as SM5 G mounted with a 2.0ℓ gasoline engine, SM5 TCE mounted with a 1.6ℓ turbo engine, SM5D mounted with a 1.5ℓ diesel engine and SM5 LPLi, a LPG model.
In particular, as the first in Korea, a ring-shaped (doughnut-shaped) LPG tank has been applied to the LPLi model. While the cylindrical tank took up a trunk space in the existing LPG vehicles, a ring-shaped tank was installed in the space for spare tires.
As a result, the trunk space increased from 292ℓ to 349ℓ. In the existing LPG vehicles, it was difficult even to fit a wheelchair in the trunk. However, the new SM5 LPLi can carry not only a wheelchair, but also two travel bags in the trunk.
The ring-shaped tank is applied to taxis, vehicles for people with disabilities and rental cars. Renault Samsung Motors invested approximately KRW 20 billion over three years in R&D for the ring-shaped tank application.
With this new feature, Renault Samsung Motors aims to increase annual SM5 sales volume to around 30,000 cars. SM5 is the company’s strategic mid-sized sedan and was popular enough to be sold by more than 10,000 a month at some point in the past. However, the performance is stagnant as of late. As for the domestic sales performance of SM5 over the last five years, the sales volume has been decreasing continuously from 77,382 in 2010 to 50,000 in 2011, 32,621 in 2012, 30,725 in 2013 and again to 23,871 by November last year.
Renault Samsung Motors, according to sources, will make a breakthrough in the LPG market. It plans to fill up approximately 40% of the new SM5 sales with LPG models. .
“It is true that we have been suffering stagnation as our sales team specialized to the LPG market became degraded considerably. However, we strived for recovery during the course of last year,” said Renault Samsung Motors Vice President Park Dong-hun. “Now that we are equipped with drastically improved products, we will be able to produce satisfactory outcomes.”
As for SM5 Nova, the design was changed centering on the front part. Accordingly, the new design identify of Renault Samsung Motors, which started out by introducing QM3, has been completed. Renault Samsung Motors’ family look is characterized with the confident and imposing appearance, which has been achieved with the front lamp and grills combined into one and an emblem placed in the middle.
“SM5 is Renault Samsung Motors’ flagship model that has been with the company’s history since the beginning,” said Renault Samsung Motors CEO Francois Provost. “We will keep our promise to climb to the third place in domestic market by 2016 with SM5 Nova.”