Hyundai Kia Motors Overseas Production Expands... Clear Recovery in China and India

157,598 Units Sold on May 15... Nearly Double the Previous Month's Figure
Chinese Factories Fully Recovered... India Also Gradually Resuming Operations

Hyundai Motor Ulsan Plant Export Shipping Dock (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group's overseas production, which had been hampered by the global spread of the novel coronavirus infection (COVID-19), is stretching out starting from May. In particular, the plants in China and India, the largest production bases, have shown signs of recovery after hitting bottom in April.

According to the Korea Automobile Manufacturers Association on the 30th, Hyundai-Kia Motors recorded overseas production of 157,598 units in May. Although this figure represents a 51.1% decrease compared to the same period last year, it nearly doubled from 89,876 units in April, when the global automobile market shutdown was in full swing. As a result, Hyundai-Kia Motors produced 1,028,284 units at overseas plants from January to May this year, down 35.8% from the same period last year.

While it may take some time for overseas production performance to return to last year's levels, the clear recovery trend centered on major bases is significant. In the case of the China plant, production appears to have fully recovered as of last month. Hyundai-Kia Motors' China plant, which shrank to a monthly production volume of 6,072 units in February amid the COVID-19 shock, succeeded in rebounding for two consecutive months in March and April, and produced more than 68,000 units in May. This is the first time this year that Hyundai-Kia Motors produced more vehicles than in the same period last year.

India, which recorded 'zero monthly production' in April due to a nationwide shutdown, also began to breathe again in May. As Indian plants gradually resumed operations, Hyundai Motor and Kia Motors produced 12,100 units and 4,703 units respectively last month.

Production in Europe, another major market, also rebounded about twofold compared to the previous month. As automobile demand in Europe shows signs of recovery, Hyundai-Kia Motors is preparing to normalize factories starting this month. Kia Motors began expansion work on its Slovakian engine plant, which had been postponed due to the COVID-19 crisis, earlier this month, and Hyundai Motor recently switched its Czech plant to a three-shift system and is reportedly increasing the supply of eco-friendly vehicles, which are in high demand in Europe.

Professor Kim Pil-su of the Department of Automotive Studies at Daelim University said, "Among global finished car plants, Hyundai-Kia Motors currently has the highest plant operating rate," adding, "As governments around the world feel the burden of shutdowns and accelerate the resumption of economic activities, overseas production to respond to the increase in global new car demand will also speed up."