'Clear Preference for Large Cars' Domestic Compact Mid-Size Car Sales Decline

[Asia Economy Reporter Changhwan Lee] In the first half of this year, sales of compact mid-size passenger cars by five domestic automakers fell to the lowest level in the past decade. This is attributed to consumers' continued preference for large and luxury vehicles.

According to the automotive industry on the 1st, the sales volume of compact mid-size passenger car models by five domestic automakers in the first half of this year was 53,797 units, a 3.0% decrease compared to the same period last year.

This level is less than half of the 124,336 units sold in the first half of 2011, ten years ago.

Amid the popularity of sports utility vehicles (SUVs), overall passenger car sales have declined. While various new models have been launched in other segments including SUVs, the compact mid-size segment has been significantly contracted due to the lack of newly introduced models.

The number of sales models is also decreasing. Representative compact mid-size models include Hyundai's Avante, i30, and Veloster, and Kia's K3. Korea GM (GM Korea) and Renault Samsung Motors have discontinued their once-main models, the Cruze and SM3.

Looking at the performance by model in the first half, the Avante sold 40,222 units, accounting for 74.8% of domestic compact mid-size sedan sales. Kia's K3, which recently released a facelift model, sold 13,227 units, accounting for 24.6%. These two models practically dominate the domestic compact mid-size car market.

The struggle of compact mid-size models is interpreted as a result of recent consumer preferences focusing mainly on SUVs and large vehicles. The strong popularity of Hyundai's luxury brand Genesis, as well as imported cars such as Mercedes-Benz and BMW, also contributes to the declining interest in compact mid-size cars.