Hyundai Motor and Kia Increase Sales Through Q3 Last Year...The Only Global Companies to Do So

Maintaining 5th Place in the Global Rankings

On the 21st, one day before the Chuseok holiday, export vehicles are waiting to be loaded at Pyeongtaek Port in Gyeonggi Province. (Aerial photography cooperation = Seoul Metropolitan Police Agency Aviation Unit Chief Lieutenant Colonel Lee Sang-yeol, Pilot Lieutenant Kim Doo-soo, Crew Lieutenant Kwak Sung-ho, Sergeant Park Sang-jin) / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Yoo Je-hoon] Amid the difficulties faced by the global automobile manufacturing industry in production and sales last year due to the COVID-19 pandemic, Hyundai Motor Company and Kia Motors were the only major manufacturers to record an increase in cumulative sales as of the third quarter of last year.

According to the Industry Trend Report published on the 8th by the Korea Automotive Technology Institute, Hyundai Motor Company and Kia Motors posted a cumulative sales revenue of $100.7 billion (approximately 113 trillion KRW) as of the third quarter of last year, marking a 0.8% increase compared to the same period the previous year. Hyundai Motor Company saw a 0.9% decrease, but Kia Motors increased by 3.9%, resulting in the overall growth.

The institute analyzed that Hyundai Motor Company and Kia Motors performed relatively well compared to the previous year due to the launch of various new models across brands such as the Genesis G80, GV80, Hyundai Avante, Tucson, Kia K5, Sorento, and Carnival, as well as the expansion of premium vehicle sales.

On the other hand, most other global automobile manufacturers experienced a decline in sales. Toyota's sales revenue decreased by 18.3%, while Volkswagen (-10.7%), Renault-Nissan Alliance (-34.2%), GM (-20.2%), Honda (-19.9%), and Ford (-21.5%) also showed consecutive downward trends.

In particular, some companies struggled due to internal conflicts and COVID-19. The Renault-Nissan Alliance saw both performance and profits decline due to ongoing internal conflicts and Nissan's withdrawal from the Korean market. The recently formed 'Stellantis,' a joint venture between FCA and PSA, ranked fourth in sales volume in 2019 but fell to sixth place as of the third quarter due to the impact of COVID-19.

The industry rankings were also adjusted due to the impact of COVID-19. Despite a decrease in sales performance in the first half, Toyota recovered its performance mainly in the North American and Chinese markets, recording a cumulative sales volume of 6.684 million units by the third quarter, rising to first place. Volkswagen dropped one rank to second place for the first time in five years due to the partial closure of its European factories. Hyundai Motor Company maintained fifth place due to Stellantis's poor performance.

The institute forecasted that sales recovery due to COVID-19 would continue this year but noted that continuous profitability improvement through cost reduction and restructuring is necessary in the era of transition to future vehicles. According to LMC Automotive, global automobile sales are expected to reach 86.4 million units this year and 91.5 million units next year.

The institute stated, "With expanded investments for the transition to future vehicles and the full-scale implementation of exhaust gas emission regulations this year, corporate cost burdens are expected to continue increasing," adding, "Automobile manufacturers are already striving to defend profitability through various measures such as factory closures, workforce reorganization, and restructuring, but these efforts are expected to intensify further in the future."