'Corona Shock' Ongoing... Overseas Sales of Completed Vehicles Halved for Two Consecutive Months (Comprehensive)

[Asia Economy Reporter Su-yeon Woo] Due to the shock of the novel coronavirus infection (COVID-19), overseas sales of domestically produced finished cars have fallen to half the level of the previous year for two consecutive months. Compared to April, when sales fell below 200,000 units, the overseas sales volume of the five finished car companies has slightly recovered, but it still remains at half the level of last year.

According to the finished car industry on the 1st, overseas sales of the five domestic finished car companies (Hyundai, Kia, Renault Samsung, SsangYong, and Korea GM) in May this year amounted to 277,286 units, a 47.8% decrease compared to the same month last year. Although it increased by 40% compared to the previous month, it still shows signs of not recovering from the shock when compared to the pre-COVID-19 period when monthly sales exceeded 500,000 units.

In May, Hyundai and Kia's overseas sales decreased by 49.6% and 44%, recording 146,700 units and 109,732 units respectively, while Korea GM's exports fell below 20,000 units despite the strong performance of the Trailblazer. Renault Samsung, which failed to secure successor export volumes for the Nissan Rogue, recorded only 1,358 units, an 83% decrease compared to the previous year, and SsangYong's exports also fell below 1,000 units for two consecutive months.

On the other hand, domestic sales of the five companies have surpassed 100,000 units for three consecutive months, showing a strong performance. In May, domestic sales of the five domestic finished car companies reached 146,130 units, a 9.3% increase compared to the previous year. Kia (19%) and Renault Samsung (72%) showed remarkable progress, driven by the new car effects of the Sorento and XM3.

Hyundai Grandeur, Best-Selling Domestic Car for 7 Consecutive Months

◆ Hyundai Motor, Overseas Sales Halved but Domestic Sales Zoom

In May, Hyundai Motor sold 217,510 units worldwide (78,100 units domestically, 146,700 units overseas). Domestic sales increased by 4.5% compared to the same period last year, while overseas sales decreased by 49.6%.

Especially in the domestic market, sales of the Avante, which launched a new model in April, nearly doubled compared to the same period last year. The Grandeur increased sales by 61.1% during the same period, becoming the best-selling car in the domestic market for seven consecutive months. Recreational vehicles (RVs) recorded a total of 16,803 units, including 5,765 Santa Fe, 4,177 Palisade, and 2,913 Kona (including 966 hybrid models and 531 electric models).

The premium brand Genesis led overall brand sales with 7,582 units of the G80 (including 66 units of the old model). The SUV model GV80 followed with sales of 4,164 units. The G70 and G90 sold 613 and 601 units respectively.

◆ Kia Motors, Domestic Sales Up 19% Thanks to New Sorento

Kia Motors sold 160,913 units globally in May, a 32.7% decrease compared to the same period last year. Domestic sales increased by 19% to 51,181 units, while overseas sales decreased by 44% to 109,732 units compared to the same period last year.

The best-selling Kia vehicle last month was the Sorento (9,297 units), marking the top monthly sales for Kia for two consecutive months. Passenger models sold a total of 21,251 units, including 8,136 K5, 4,464 K7, and 3,452 Morning. RV models, including the Sorento, sold a total of 23,874 units, including 5,604 Seltos, 2,941 Carnival, and 2,227 Niro.

In the overseas market, the Sportage sold 24,229 units, becoming the best-selling model overseas. A Kia Motors official said, "Although management uncertainty has increased due to the COVID-19 situation, we will minimize negative impacts through active risk management and overcome difficulties by leading with new cars such as the Sorento and K5."

◆ Renault Samsung Solidifies 3rd Place in Domestic Market with Over 5,000 XM3 Sales

Renault Samsung solidified its position as the 'third in domestic sales' with the effect of selling over 5,000 XM3 units in a month. In May, Renault Samsung sold 10,571 units domestically, a 72% increase compared to the same month last year. About half of these were XM3 (5,008 units), supported by QM6 (3,963 units). The Renault Captur, launched last month, sold 450 units in May.

On the other hand, exports remained at 1,358 units, an 83.2% decrease compared to the previous year, as successor volumes for the Nissan Rogue have not yet been allocated.

◆ SsangYong Motor Recovers Domestic Sales to 7,000 Units Through 'Untact Sales'

SsangYong Motor recovered domestic sales to around 7,000 units through untact marketing such as online commerce and home shopping. This is about a 26% increase compared to the previous month (6,017 units), but still a 25% decrease compared to the previous year.

A SsangYong Motor official explained, "Contracts increased by more than 50% compared to the previous month due to untact marketing and strengthened promotions, but sales only increased by 21% due to production disruptions caused by the spread of COVID-19." SsangYong plans to strengthen its lineup by launching the facelifted G4 Rexton and the long-body version of the Tivoli, 'Tivoli Air,' in the second half of this year.

On the other hand, exports decreased by 10.7% compared to the previous month as lockdown measures in the European region, the main market, have been prolonged due to the spread of COVID-19.

◆ Korea GM, Both Exports and Domestic Sales Dim Despite New Models

Korea GM recorded total sales of 24,778 units in May, with 5,993 units domestically and 18,785 units exported. This represents a 10.9% decrease in domestic sales and a 45.4% decrease in exports compared to the previous year.

Thanks to the strong performance of new models such as the Chevrolet Trailblazer and Traverse, RV vehicle sales increased by 43% compared to the previous year, reaching 1,970 units. However, sales of passenger cars, including compact cars, decreased by more than 37%, dragging down May's performance.

Exports have also struggled to recover as North American sales, the main market for the Trailblazer, have faced setbacks. In May, Korea GM's RV exports amounted to 12,955 units, a 40% decrease compared to the previous year.