KGM Commercial Exports Electric Buses Overseas for the First Time

KGMC's first electric bus export marks a key step toward global expansion and sales growth.

2024-08-23     Jiyin Jung
KGM Commercial's electric bus. (Source: KGM Commercial)

KGM Commercial (KGMC) announced on 22 that it has successfully completed its first-ever export of electric buses, marking the company's initial foray into the global market and setting the stage for increased international sales.

This milestone represents a significant transformation for KGMC, transitioning from a primarily domestic-focused company to an export-driven entity following its incorporation into the KG Group family. This move lays the foundation for early normalization of management through international market growth and increased sales.

The first overseas destination for KGMC’s electric buses is Paraguay, a market dominated by Chinese brands. In collaboration with the Korea Automotive Technology Institute (KATECH), KGMC has exported five units of its eco-friendly electric bus, the SMART 110E.

This export is part of a broader project under the 2024 Official Development Assistance (ODA) program, led by KATECH. The initiative includes not only the export of buses but also the establishment of an automotive parts center in Paraguay. This center will support the pilot deployment and operation of electric buses, contributing to the dissemination and support of green automotive technology, thereby fostering cooperation that benefits national interests.

As part of this collaboration, a delegation from Paraguay, including Minister of Industry and Commerce Javier Giménez García de Zuñiga, General Director of Itaipu Binacional Justo Aricio Zacarías Irún, Paraguayan Ambassador to Korea Miguel Ángel Romero, and Executive Director of KATECH Yang Jeong-jik, visited KGMC's headquarters in Pyeongtaek and its Gunsan plant on August 20 and 21. During their visit, they shared insights into the development of Korea's eco-friendly automotive industry and discussed strategies to strengthen Paraguay’s automotive policy capabilities, enhance mutual trust, and reinforce cooperation between the two nations.

Minister of Industry and Commerce Javier Giménez García de Zuñiga (second from the left) and Itaipu Binacional General Director Justo Aricio Zacarías Irún (first from the left) visit the KGMC manufacturing plant in Pyeongtaek, Gyeonggi-do, on 20 to tour the production line. (Source: KGM Commercial)
Minister of Industry and Commerce Javier Giménez (sixth from the right) and Itaipu Binacional General Director Justo Zacarías (eighth from the right), who visited Korea for the ODA project organized by KATECH, visited the KGMC Gunsan plant on 21. (Source: KGM Commercial)

Additionally, KGMC plans to host a launch event ceremony for the first electric bus in Paraguay this November, with high-ranking government officials, including the President of Paraguay, expected to attend.

Building on this successful export to Paraguay, KGMC is set to expand its efforts in the Asia-Pacific region, particularly in right-hand drive (RHD) markets. The company aims to boost its international sales through aggressive local marketing and strategic market penetration.

A KGMC representative stated, "We aim to grow into a global leader in green commercial vehicles by producing a diverse range of eco-friendly buses, expanding our domestic market, and leveraging our international network to increase sales volumes in regions such as ASEAN. Our goal is to evolve from a domestic green bus manufacturer into a comprehensive global green commercial vehicle company."