"What's to Become of Sonata"... 8th in Domestic Sales in First Half, Top 10 Spot Uncertain in Second Half

Domestic sales of 23,401 units in H1... Dropped to 8th place
Dominated best-selling car No.1 for several years
Most registered vehicles in Korea with 1.44 million units
Contrasted with Grandeur's domestic No.1 ahead of new model launch
Discontinuation rumors rise due to no successor model development plan

8th generation new Sonata displayed at the 2019 launch event / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor's mid-size sedan Sonata sold 23,401 units domestically in the first half of this year. It ranked eighth among passenger cars and barely made it into the top 10 overall, including commercial vehicles (Porter ranked 1st, Bongo 3rd). Due to the semiconductor supply shortage and other factors, overall sales volume shrank, and Sonata's sales decreased by about 28% compared to the first half of last year, showing a larger decline.

The noticeable decline of Sonata is because it is still perceived as a symbol of domestic sedans beyond just the Hyundai brand. According to the Korea Automobile Manufacturers Association's domestic vehicle registration data, as of May this year, 1,441,754 vehicles registered in Korea bear the name Sonata.

With about 20.64 million passenger cars registered in Korea, this means that 7% of all passenger cars on the road (including imports) are Sonatas. The traditional volume model Avante slightly exceeds 1.38 million units, so it seems it will take some more time for Avante to catch up with Sonata.

Hyundai Sonata Evolution

Considering total sales including production and overseas exports, lower-tier models like Accent or Avante have higher numbers, but if limited to the domestic market, Sonata is a few steps ahead. Sonata, first introduced in 1985, flourished from the 1990s. Since the release of the 4th generation EF Sonata in the year following the Asian financial crisis, through complete redesigns like NF and YF, it rarely lost the title of best-selling passenger car.

The reputation began to crack in 2014. Despite the launch of a completely redesigned new model in March that year, sales were disappointing. At that time, a diesel sedan boom centered on imported cars occurred, but Sonata only offered gasoline and liquefied petroleum gas (LPG) models, causing a slower-than-expected sales rebound.

Eventually, by the end of that year, Hyundai started selling Sonata as a taxi model. Previously, taxi models were only sold as the previous generation YF Sonata, and the LF Sonata LPG model was sold only to disabled users or rental car companies.

Past generation Sonatas displayed at the 'LF Sonata' launch event held in 2014 at COEX, Samseong-dong, Gangnam-gu, Seoul. Photos clockwise: 1st generation, 2nd generation, 3rd generation, 3rd generation facelift, 4th generation, 5th generation, 6th generation Sonata.

Riding the 'taxi effect,' Sonata regained first place the following year, but subsequent performance was lackluster compared to the past. Since 2016, it has never ranked first in domestic passenger car sales. In 2018, when key models like Grandeur, Santa Fe, Carnival, and Avante released new models, Sonata even fell to sixth place, behind the Korean GM compact car Spark.

This contrasts with the Grandeur, which is solidly maintaining first place in passenger car sales despite announcing a complete redesign for the second half of this year. Typically, sales rebound with partial redesigns or product improvements, but currently, even this is difficult.

A significant portion of past sales was supported by taxis, but according to Hyundai Motor Group's mid- to long-term business strategy, taxi models are shifting to electrified models like Kia Niro Plus. Considering that the production base, Asan Plant, must focus on the Ioniq 6 and the new Grandeur, Sonata is inevitably being neglected.

Recently, rumors have been circulating both inside and outside the company that no successor model is being developed and that the model will be discontinued. The company denies discontinuation rumors, stating that a model with improved design and some specifications may be released next year.