Anchor: Hyundai Motor Company has released its first subcompact SUV dubbed Kona. Auto sales remain sluggish but the SUV market is bucking that trend. Competition is getting tougher in the small sport utility vehicle market.
Our Park Jong-hong has this report.
 
Report: Hyundai hopes it will create a storm in the automotive world.
 
The latest car by Hyundai is called Kona, derived from the winter storm in Hawaii.
 
Unveiled on Tuesday, Kona is fitted with a one-point-six liter engine and is smaller than the compact SUV Tucson.
 
While introducing the new model, Hyundai Vice Chairman Chung Eui-sun said Kona comes with intelligent safety features rarely found in its class of vehicles.
 
[Sound bite: Hyundai Vice Chairman Chung Eui-sun (Korean)]
“Kona is the first subcompact SUV targeting major markets in the world. The SUV market has been enjoying growing demand for seven years in a row and annual sales continue to surge by almost 20 percent.”
 
In fact, the popularity of SUVs continues to soar.
 
In 2011, the domestic ratio of SUVs among all cars was less than 20 percent. Now they account for more than 32 percent.
 
Hyundai will have to catch up with rivals like GM’s Trax and Ssangyong’s Tivoli that are both popular in the South Korean SUV market.
 
With sister company Kia Motors set to release a new SUV next month, the market for sport utility vehicles is only likely to heat up even more.
Park Jong-hong KBS World Radio News.