Hyundai Motor Group Global Sales 506,000 Units
Down 18% Year-on-Year but Up 29% from Previous Month
"Momentum to Continue with New Model Launches and Expanded Overseas Production in Second Half"
[Asia Economy Reporter Minwoo Lee] Hyundai Motor Group's automobile sales are showing signs of recovery. Although the decline compared to the previous month has narrowed due to the resumption of economic activities in various countries, concerns about the resurgence of COVID-19 remain, highlighting the need to verify whether the recovery will continue.
According to Hyundai Motor Group on the 4th, the total global wholesale automobile sales last month were recorded at 506,000 units. This represents an 18.0% decrease compared to the same month last year but a 29.3% increase from the previous month. This is analyzed to be due to a recovery from production stoppages caused by COVID-19 and strong domestic sales supported by the reduction in individual consumption tax.
Excluding China, the recovery was even more significant. Total sales excluding China were around 440,000 units, down 19.0% compared to June last year but up 34.2% from the previous month. Seonjae Song, a researcher at Hana Financial Investment, explained, "Retail sales of Hyundai and Kia cars in China decreased by 32% and 31%, respectively, compared to the same month last year," adding, "The impact of COVID-19 has lessened, but the decrease is due to a high base caused by discount sales last year."
Global eco-friendly vehicle sales, including Plug-in Hybrid Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicles (FCEV), are steadily increasing. Shipments of these eco-friendly vehicles recorded 23,549 units (19,748 domestic, 3,801 overseas), a 96% increase compared to the same month last year. Hyundai and Kia each saw increases of 28% and 194%, respectively, compared to the same month last year.
However, demand in emerging markets remained sluggish. Due to the spread of COVID-19, Hyundai experienced declines compared to the previous year in Russia by 23%, India by 34%, Brazil by 41%, and Latin America by 60%. Kia's retail sales in other regions also decreased by 27%.
Nevertheless, various positive factors expected in the second half of the year suggest a potential rebound. Domestically, the individual consumption tax reduction is being extended, and new domestic model launches are scheduled, including the Santa Fe facelift (F/L) earlier this month, the Tucson full model change (FMC) and G70 F/L in the third quarter, and the GV70 in the fourth quarter. The GV80's U.S. launch before summer and the resumption of global new model launches are expected to steadily improve the product lineup.
Kia is also expected to continue benefiting from new model effects with the domestic Carnival, and the U.S. K5 and Sorento launching in the second half of the year. The annual production capacity expansion of 100,000 units for the Telluride, which is very popular in the U.S., is another positive factor. Based on favorable exchange rates, shipments are expected to increase to 90% of the plan in the third quarter and 110% in the fourth quarter. Jang Moonsoo, a researcher at Hyundai Motor Securities, said, "With the economies of the U.S. and Europe halted, competitors like GM and Renault have postponed new model launches by six months to a year, and Ford and Nissan have suspended investment plans, reflecting a retreat in future strategies. Hyundai Motor Group, maintaining stable domestic production and sales along with ongoing new model plans and future strategies, is expected to leap to a leading position with differentiated strategies among companies in the post-COVID-19 phase, where demands for eco-friendly and autonomous vehicles will intensify."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
