Electric Vehicle Subsidy Policy Increases Waiting Demand
Sales Days May Decrease During Seollal Holiday
Export Hyundai vehicles are being moved onto a ship at the Asan-ro pier in Ulsan. / Ulsan = Photo by Kang Jin-hyung aymsdream@
Domestic automakers' domestic sales volume fell below 100,000 units, decreasing both year-on-year and month-on-month. This is attributed to the delayed announcement of electric vehicle subsidy policies compared to previous years and a reduced number of working days due to the Lunar New Year holiday.
On the 4th, the combined domestic sales volume reported by five domestic automakers?Hyundai Motor Company, Kia, Korea GM, KG Mobility, and Renault Korea Motors?was 99,203 units. This represents a sharp 20.7% decline compared to February last year, when sales exceeded 120,000 units. Compared to the previous month, sales also dropped by 3.4%, falling below 100,000 units.
The sales decline was significant for Hyundai Motor Company, the 'eldest brother' among them. With a total of 47,653 units sold, sales plummeted 26.7% year-on-year. Hyundai explained, "Production of some models such as the Grandeur and Avante was halted due to electric vehicle facility construction at the Asan plant and line rationalization work at the Ulsan Plant 3." They added, "The reduced number of working days during the February Lunar New Year holiday and the delayed announcement of electric vehicle subsidies, which effectively halted electric vehicle sales, also impacted the results."
Kia also experienced a double-digit decline, selling 44,008 units, down 12.0% during the same period. However, Kia attributed this to a base effect, noting that February last year recorded a record high with sales exceeding 50,000 units.
Renault Korea and KG Mobility also saw domestic sales shrink by 18.5% and 44.8% year-on-year, respectively. However, Korea GM was the only company to increase domestic sales, selling a total of 1,987 units?nearly double the 1,117 units sold in February last year. This increase is attributed to the addition of sales from the Chevrolet Trax crossover, which was launched in March last year. In February this year, Korea GM’s Chevrolet Trax crossover sales reached 1,447 units, accounting for 72.8% of total domestic sales.
Most companies analyzed that the delayed announcement of electric vehicle subsidy support and the reduced subsidy scale were the main factors. Additionally, unlike last year, the Lunar New Year holiday fell in February, reducing the number of sales days.
Meanwhile, the total sales volume of the five domestic automakers reached 604,524 units, down 3.5% compared to February last year. Export volumes increased for all companies except Kia (-2.8%). Renault Korea, which exports heavily to Europe, recorded export volumes of 5,070 units, maintaining the usual level despite delayed shipments caused by rebel activities near the Red Sea.
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