Syrian Car Market Opens.... KG Mobility Weighs Local Entry

[Financial News] KG Mobility (KGM) is reportedly in internal discussions about entering the Syrian market. It is analyzed that the market potential of Syria is increasing as our country established diplomatic relations with Syria last month, and the European Union (EU) and the United States have successively lifted economic sanctions.
According to a comprehensive report by Financial News on the 27th, KGM is internally reviewing which car models would be advantageous to sell while keeping an eye on the policies of Syria's new government. With the recent end of the civil war and the lifting of Western economic sanctions, they are looking into market possibilities. A KGM representative explained, "We are currently at the stage of understanding the Syrian market situation."
KGM is pioneering emerging markets such as the Middle East and Latin America, seeking to diversify its export markets, which were previously focused on Europe. The strategy is to target niche markets outside the fiercely competitive domestic and North American markets.
According to statistics from the Korea Automobile Mobility Industry Association (KAMA), KGM's export volume from January to April this year totaled 22,501 units. Compared to the 11,730 units sold in the domestic market during the same period, exports were nearly twice as high. In exports, the largest volume was shipped to Europe, with 14,363 units (63.8%). The next largest export destinations were the Middle East and Latin America, with 5,988 units (26.6%).
If the entry into Syria becomes full-scale, it is expected that the presence in the Middle Eastern market will further expand. Syria, even before the civil war, was a country where Korean car companies achieved significant export volumes, indicating high potential.
According to the Korea International Trade Association, the export value of cars to Syria (MTI code 741) was at the level of 917.51 million dollars just before the civil war in 2010, but it decreased to 3.73 million dollars last year as the civil war became full-scale.
However, since the establishment of diplomatic relations, the export value of cars to Syria has been significantly increasing. From January to April this year, the export value of cars to Syria was 30.379 million dollars, a more than 26-fold increase compared to 1.121 million dollars in the same period last year. As Syria's reconstruction projects become full-scale and financial sanctions are eased, there are also forecasts that the speed of market entry by the domestic automobile industry may accelerate.
Professor Lee Ho-geun of Daedeok University’s Department of Future Automotive Studies explained, "Syria may not be considered a big market for cars or a market where premium cars sell well, but in a situation with many external variables like U.S. tariff risks, there is significance in being able to diversify export destinations," adding, "Manufacturers are likely to make various efforts to compensate for export declines due to regulations in other countries." one1@fnnews.com Reporter Jeong Won-il