KG Mobility is set to launch KG S&C this month as part of its growth towards becoming a sustainable enterprise. This subsidiary is dedicated to the development and sale of custom accessories and specialized vehicles, along with providing engineering services.
KG S&C is fully owned by KG Mobility, and its primary business focuses on creating customizing products and special-purpose vehicles. The company plans to begin development and sales of accessories such as electric side steps and deck tops as part of its initial offerings.
Initially, KG S&C aims to expand its range by developing new customization products and exploring opportunities in export markets. In the future, the firm intends to offer modified specialized vehicles based on automobiles produced by KG Mobility.
Interest in customizing accessories amongst KG Mobility’s customers has surged, with the ratio of buyers incorporating at least one custom accessory rising to about 90% from just over 50% in 2020.
With the establishment of this specialized business division, KG Mobility is well-positioned to develop more competitive and professional products, which will allow them to better meet the demands of their consumer base and enhance overall customer satisfaction.
Moreover, as vehicles evolve from mere transportation means to becoming integral parts of daily life, consumer interest in tuning—aimed at improving performance or personalizing aesthetics—continues to rise, indicating substantial future revenue potential in this area.
Tuning can be segmented into various categories: tune-up tuning focuses on enhancing engine and drivetrain performance, dress-up tuning allows for visual modifications such as paint design and wheel/tire changes, while build-up tuning involves alterations like adding special equipment or converting vehicles into camper vans.
On a governmental level, there are initiatives to nurture the tuning industry as a source of new value and job creation, with projections suggesting the domestic tuning market could expand from 5.9 trillion won in 2020 to 10.5 trillion won by 2030.
Meanwhile, KG Mobility is also planning to establish a certified used car business. This initiative involves purchasing KG Mobility (Ssangyong) brand vehicles that are within 5 years or 100,000 km, conducting performance inspections and repairs, and subsequently selling certified pre-owned cars. Preparations for this project are expected to be completed by the first half of this year, with operations commencing in the second half.
KG Mobility expressed optimism about the potential for improved consumer satisfaction due to the enhanced product development capability offered by this new specialized division. Additionally, they anticipate a significant increase in revenues related to tuning as consumer interest continues to grow.
News by 이상진 daedusj@autodiary.kr