Hyundai Kia Motors, August European Sales Show First Year-on-Year Increase Since COVID
August Market Share 8.3%... Positive Signal for Annual Breakthrough Over 7%
Popularity of Eco-Friendly Cars Like Kona EV and Niro EV
[Asia Economy Reporter Kim Ji-hee] Hyundai Kia Motors is recovering from the impact of the novel coronavirus disease (COVID-19) in Europe. While major automakers have been hesitant, Hyundai Kia Motors has been performing well by leading with eco-friendly vehicles, raising expectations for achieving a 7% annual market share in Europe this year.
According to the European Automobile Manufacturers Association (ACEA) on the 18th, Hyundai Kia Motors' sales volume in the European market last August was 73,391 units, a 3.3% increase compared to the same period last year. This is the first time since February, just before the spread of COVID-19, that monthly sales have increased year-on-year this year. Hyundai Motor recorded 37,471 units, down 8.1% from the same period last year, but Kia Motors led the overall performance with sales surging 18.7% to 35,920 units.
Accordingly, the market share in Europe last month jumped to 8.3%. The cumulative market share from the beginning of this year to August is 7.1%, signaling a green light for Hyundai Kia Motors' first-ever "annual market share surpassing 7%" since entering Europe. The highest market share Hyundai Kia Motors has recorded in Europe so far was 6.7% in 2018 and 2019.
Above all, Kia Motors' strong performance is impressive. Last month, among individual brands, only BMW and Kia Motors recorded increased sales in the European market compared to the previous year. Kia Motors is the only brand with double-digit growth. Thanks to the strong sales, the annual sales gap with Hyundai Motor, which has been around 50,000 units every year, is expected to narrow or even reverse this year.
The overall sales ranking remained 4th. In particular, the Volkswagen Group (-24.2%), PSA Group (-19%), and Renault Group (-22.8%), which form the top three in sales, all continued to experience year-on-year sales declines last month. Total car sales in Europe last month decreased by 18.9% compared to last year.
The background to Hyundai Kia Motors' remarkable performance improvement in Europe is attributed to the popularity of eco-friendly vehicles. Although many models within the Hyundai Kia Motors brand showed a downward sales trend compared to last year, sales of eco-friendly vehicles such as the Kona EV, HEV models, and Niro EV have been steady. As demand for eco-friendly vehicles has sharply increased locally after COVID-19, Hyundai Kia Motors, which has strengths in eco-friendly vehicles, has been supported in its performance.
An industry insider said, "Hyundai Kia Motors' strong performance in Europe can be seen as strengthening its position in the global eco-friendly vehicle market," and added, "The strategy of quickly forming an eco-friendly vehicle-centered lineup faster than other brands in Europe has been successfully effective."
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