[THE INVESTOR] Ssangyong Motor is likely to be the most affected in sales by the increased public concern over diesel vehicle’s impact on air pollution, as well as the government’s push to curb diesel-fueled cars as part of measures to counter fine dust in the country, local news reported on June 28.

From January to May this year, a total of 40,946 cars were sold by Ssangyong Motor, the Korean unit of Indian auto giant Mahindra & Mahindra. Among them, 31,237 units, or 76.3 percent, were diesel-fueled vehicles, the highest percentage of diesel units among carmakers here. 

Meanwhile, Kia Motors’ sales comprised of 49.7 percent diesel units, while the figure was 41.2 percent for Hyundai Motors. Renault Samsung stood the fourth with 15.5 percent, while 9 percent of GM Korea’s sales came from diesel vehicles. 
Ssangyong’s diesel version of its popular Tivoli SUV is the front-runner in the diesel market. It sold 12,999 units in the same period, accounting for 41.6 percent of entire sales of the carmaker’s diesel vehicles.

If diesel cars are equipped with adequate emission control device, which reduces the amount of hazardous nitrogen oxide into the air, they would not cause a major problem.

However, according to a study conducted by Ministry of Environment in May, Tivoli’s diesel car emitted 0.86 gram per kilometer of nitrogen oxide, 11 times more than the standard of 0.08 gram per kilometer set by the government. Ssangyong ranked the third highest among 20 car models sold in South Korea, after Nissan Qashqai sports utility vehicle and Renault Samsung’s QM3.

Following the result the ministry fined Nissan 340 million won (US$ 291,597) for the violation, while demanding Renault Samsung to come up with countermeasures to reduce the emission level.

The authorities, however, have not taken any action against Ssangyong. 
Taking into consideration the number of units sold, Ssangyong’s Tivoli diesel cars have emitted the most amount of nitrogen oxide in the air, beating Renault Samsung and Nissan.

Ssangyong has announced that the it will roll out a new gasoline powered SUV, the Tivoli Air, in July, in an effort seen as seeking to balance the proportion of diesel units in its product offerings.

“Among all the Tivoli sales, the percentage of gasoline model increased from 40 percent in January to 60 percent in May,” an official with the automaker said. “With the introduction of Tivoli Air, we are planning to gain a foothold (in the market) with gasoline models.”

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