Volkswagen eyes a Korean revival with a new Golf. But is a diesel hatchback the answer?

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Volkswagen eyes a Korean revival with a new Golf. But is a diesel hatchback the answer?

Published: 14 Mar. 2025, 18:14 Updated: 14 Mar. 2025, 19:01

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

Till Scheer, managing director of Volkswagen Group Korea, poses with the facelifted Golf hatchback during a media event in Incheon on March 14. [VOLKSWAGEN KOREA]

Volkswagen is eying an inspiring rebound in Korea, but with a diesel-powered hatchback — the two things Koreans don't seem to prefer at the moment.

The local arm of the German carmaker rolled out a facelifted Golf on Friday, its first partially revamped model since 2022, along with a promise to launch three more new models throughout the year.

The Golf, Volkswagen's best-selling model, comes with its first LED emblem, which it says helps make the car more stylish and improves safety at night.

While it only comes with a diesel engine for now, Volkswagen plans to introduce the Golf GTI, a gasoline-powered high-performance model, in June.

The car can run 860 kilometers (534 miles) on a full tank of gas, with a fuel economy of 17.3 kilometers per liter, which makes it an affordable option. With highway driving, it can travel up to 1,000 kilometers per tank.

The front of the facelifted Golf hatchback [VOLKSWAGEN KOREA]

The wider 12.9-inch center display has three separate divisions for enhanced usage.

"The Golf hatchback will shake up Korea's market landscape, which is currently dominated by SUVs and sedans," said Till Scheer, managing director of Volkswagen Group Korea, during a media event in Incheon on Friday, adding that it will be "the best option for Korean customers who are looking for premium compact car."

Scheer's ambition, however, may face a harsh reality, as Korea has been rapidly ditching diesel cars for years. Volkswagen is suffering from slipping sales in the country, where it moved down to the ninth-most imported brand as of last year from No. 3 in 2015.

The rear of the facelifted Golf hatchback [VOLKSWAGEN KOREA]

Korea's diesel car imports came in at 6,740 units last year through October, dipping to the lowest in 20 years, according to the Korea Automobile Importers and Distributors Association — a 96 percent nosedive compared to its peak in 2015 at 167,925 units.

Diesel engines once made up 70 percent of Korea's imported cars, thanks to a powerful output and good fuel economy. But it started to fall sharply in 2016 after the "Dieselgate" scandal, where Volkswagen was found to have passed emissions tests by using defeat devices.

Korea is also a wasteland for hatchbacks. Only 33,791 hatchbacks were sold last year, a mere 2.3 percent of the passenger vehicle market. There are no hatchback variants from local car brands except Kia's Morning.

Still, there is an argument to be made that the iconic car is immune from such trends. The Golf is one of the few hatchback models that has sold well in Korea. Since 2005, Volkswagen has sold 54,644 Golfs in the country, becoming the first imported model to exceed the 50,000-mark as a hatchback.

The sticker price of the new Golf starts from 40 million won ($27,500).

BY SARAH CHEA [[email protected]]