No Hyundai Cars in Hyundai Showroom? ...A Scene Created by Semiconductor Supply Shortage

Vehicle Delivery Delays Due to Semiconductor Shortage
Priority Supply to Reservation Customers Over Exhibition Sales

On the 10th, a Hyundai Motor store in Seoul / Photo by Song Hyundo, Asia Economy intern reporter

[Asia Economy Reporter Lim Juhyung, Intern Reporter Song Hyundo] Office worker A (27), who lives in Seoul, stopped by a Hyundai Motor dealership near his home last weekend. However, what caught A's eye was only two vehicles placed in a showroom that could easily fit six cars. A said, "I wanted to check out the new Grandeur before buying it, but I was embarrassed because there were no cars in the showroom," adding, "It's a dealership, but not being able to see the cars in advance seems a bit too much."

This phenomenon is a facet of the semiconductor supply shortage for vehicles. Now, there are even fewer cars available for display. Vehicles produced are immediately handed over to customers who made reservations.

According to the Hyundai Motor sales test-drive network website on the 13th, the total number of display vehicles placed at 731 Hyundai dealerships and direct sales stores nationwide is 1,089. This means that there are only 1.5 cars on display per dealership. Many stores have only 1 to 2 cars or even none at all.

A Hyundai car dealership in Daejeon. Only one vehicle is displayed in the showroom. / Photo by Internet Community Capture

This phenomenon is more pronounced with popular models. The Avante is currently displayed at 471 stores, but the electric SUV 'Ioniq 5' is displayed at only 21 Hyundai branches nationwide.

The semiconductor supply shortage is significantly affecting vehicle sales of Korean automakers. Hyundai Motor sold a total of 340,534 vehicles in the global market last month, a 4.5% decrease compared to the same month last year. SsangYong Motor also saw a 5.8% decrease, selling only 8,009 units, Renault Korea sold 12,011 units, down 15.2%, and Korea GM sold 26,688 units, down 0.7%.

As vehicle delivery and sales slow down, some consumers are considering reserving display cars from the start. Instead of waiting for a new car that may come out at an unknown time, they choose the advantage of being able to purchase immediately once the display period ends. Typically, display cars are exhibited for about a month and then sold at a discounted price. In the past, display cars were less popular than new cars, and it was common for company employees to buy them, but now the situation has reversed.

Hyundai's popular electric vehicle model, the Ioniq 5, can be seen at only 21 Hyundai stores nationwide. / Photo by Hyundai Sales and Test Drive Network Capture

On automobile enthusiast internet cafes, many posts have appeared from netizens turning their attention to purchasing display cars, such as "I'm urgently looking for a display car because I need a car right away," "These days, display cars are in good condition," and "Even if they are not completely new, considering the discount rate, I'm satisfied."

Hyundai Motor expects this situation to continue for the time being. A Hyundai Motor official said, "Reservations are backed up, so display vehicles do not come separately (to the showroom) and go directly to buyers," adding, "Nowadays, many customers come to the store after accessing a lot of information, so the need for display vehicles has somewhat decreased compared to the past."