[THE INVESTOR] Korea’s major automakers are set to strengthen their sport utility vehicle lineup in the US market, local news reported.

Hyundai Motor and Kia Motors, which currently sell four SUV models sold in the US, are planning to double the number by 2020, an industry insider was cited in the report.

Against the rising demand for SUVs in the US, sales of Hyundai’s Santa Fe and Tucson in May jumped by 88 percent and 90 percent on-year in the country, respectively, while sales of Kia’s Sorento and Sportage increased by 32 percent and 91 percent, respectively, according to the Korea Auto Industries Cooperate Association. 

Fueled by low gasoline prices, the SUV market is expected to continuously grow in the country. In 2008, sedan cars, which made up 51 percent of the American car market, decreased to 41 percent this year, while SUV sales increased from 30 percent to 38 percent in the same period.

However, for Hyundai and Kia, their number of SUVs is small compared to their competitors. GM sells 17 different SUVS while Toyota has 11 models.

In response, Hyundai Motor’s luxury brand Genesis will roll out two SUVs by 2020, including a midsize SUV in 2019 and a compact SUV in 2020.

Kia Motors, Hyundai’s smaller corporate cousin, is mulling the idea of releasing a full-size SUV.

Earlier this year, Kia unveiled a new full-size, seven-passenger SUV concept car Telluride at the North American International Auto Show. The carmaker is also planning on releasing hybrid SUV Niro by the end of this year.

Hyundai recently began producing its signature SUV Santa Fe at its plant in Alabama to meet the increasing demand. In the past, Santa Fe was produced in Georgia from 2005 to 2010, when the manufacturing was transferred to Kia’s plant. Production of Santa Fe will continue there as well.

“In the past, SUV was regarded as a premium car. But recently, the car prices have gone down and there are a variety of SUV models now, from a full-size, body-on-frame to a compact SUV, allowing American consumers to expand their choices,” an official at the KAICA said.

By Ahn Sung-mi (sahn@heraldcorp.com)