'Semiconductor Direct Hit' Domestic Car Industry... September Sales Down 18.9%

Decrease in Vehicle Sales in September Due to Semiconductor Shortage and Reduced Operating Days
Semiconductor Supply Shortage Expected to Continue Until Next Year

[Asia Economy Reporter Changhwan Lee] As the supply shortage of automotive semiconductors continues, the sales volume of domestic automakers significantly decreased last month.

According to the industry on the 2nd, the total domestic and overseas sales volume of five domestic automakers last month was 568,308 units, down 18.9% compared to the same period last year.

By company, Hyundai Motor sold 281,196 units, down 22.3% from the previous year, including 43,857 units domestically and 237,339 units overseas. Domestic sales decreased by 34.6%, and overseas sales decreased by 19.4%.

The Asan plant, which produces the Grandeur and Sonata, halted operations for five business days due to semiconductor issues, resulting in a striking 72.3% plunge in domestic sales of the Grandeur (3,216 units) compared to the same month last year.

Eco-friendly vehicles also saw a 5.4% decrease in sales last month with 9,340 units sold compared to the previous year. However, the first dedicated electric vehicle, the Ioniq 5, sold 2,983 units, and the hydrogen fuel cell vehicle Nexo continued its strong performance with 939 units sold, more than double last year's 461 units.

Kia sold 223,593 units last September, down 14.1% from the same month last year, with 35,801 units domestically and 187,792 units overseas. Compared to last year, domestic sales decreased by 30.1%, and overseas sales decreased by 10.1%.

In the domestic market, a total of 19,219 units were sold, including 4,386 units of the Sportage, 3,820 units of the Sorento, 3,437 units of the Carnival, and 2,654 units of the EV6, marking a 30.6% decrease compared to the same month last year.

Korea GM (GM) sold a total of 13,750 units, including 3,872 units domestically and 9,878 units for export. This is a 66.1% decrease compared to the same month last year. Domestic sales dropped by 36.5%, and exports fell by 71.3%.

It is noteworthy that domestic sales of the Chevrolet Colorado increased by 366.9% compared to last year, marking a rise for three consecutive months.

In the case of Renault Samsung Motors, domestic sales decreased by 25.8% to 4,401 units, but export sales increased by 612.5% to 10,346 units, resulting in a total global sales volume of 14,747 units, up 99.7% compared to the same month last year. It was the only company among the five to show a positive growth.

The XM3 export vehicle (export name Renault Arkana) led overall performance by being stably supplied due to its popularity in the European market and Renault Group's priority parts supply policy.

SsangYong Motor's domestic sales last month were 3,859 units, down 53.0% compared to the same month last year, while overseas sales increased by 28.6% to 2,091 units. Overall, a total of 5,950 units were sold, down 39.5% from last year.

Meanwhile, the supply shortage of automotive semiconductors caused by COVID-19 is expected to continue for some time. Automotive market research firm LMC Automotive has lowered its global new car production forecast for this year by 6.2% from the previous estimate. The forecast for next year was lowered by 9.3%, from 91.1 million units to 82.6 million units.