Despite Casper and Ray's Fierce Efforts... The 100,000 Unit Barrier for Compact Cars Remains Challenging

[Asia Economy Reporter Yu Je-hoon] This year, the domestic compact car market is expected to struggle to surpass the 100,000-unit mark. Although sales have increased thanks to Hyundai Motor Company's latest compact SUV, the Casper, and Kia Ray, which is favored for 'chabak' (car camping), the ongoing global shortage of automotive semiconductors continues to impact supply.

According to the five domestic automakers (Hyundai, Kia, GM Korea, Renault Samsung Motors, and SsangYong Motor) on the 4th, cumulative domestic compact car sales from January to November this year totaled 85,229 units. Considering that only December remains, it is widely expected that surpassing the 100,000-unit threshold will be difficult.

The domestic compact car market has recently suffered continuous decline due to consumers' preference for SUVs and large vehicles. Last year, sales amounted to about 97,000 units, marking the first time since 2007 that the 100,000-unit benchmark was not met.

This year, there was some optimism that the 100,000-unit barrier could be overcome again, driven by Hyundai's Casper, the first compact model in 19 years, and the renewed popularity of the Ray amid the 'chabak' trend. In fact, since its launch, the Casper has sold 6,679 units, and the Ray recorded sales of 33,114 units from January to November, a 27.9% increase compared to the previous year.

However, due to the global automotive semiconductor shortage that has affected the industry since early this year, achieving the 100,000-unit mark has become difficult. For example, the Casper reportedly has a waiting period of 4 to 5 months from order to delivery, while the Ray and Morning require about 9 to 10 weeks.

Moreover, unlike the Casper and Ray, other compact cars have shown disappointing results. The Morning's cumulative sales this year have dropped by 28% compared to last year, totaling around 28,000 units, and the Spark has also decreased by 32%, remaining at about 17,000 units.