The domestic sales volume in March of five major automakers (Hyundai Motor, Kia, KG Mobility, Renault Korea, and Korea GM) decreased by 14% compared to March of last year. This marks a two-month consecutive decline in monthly sales compared to the same period last year.
Amid sluggish demand for electric vehicles centered on the domestic market, demand has concentrated on popular hybrid models, resulting in longer waiting times for delivery. Recently, automakers have been increasing discount promotions on major electric vehicles to respond to the decline in demand.
Kia launched promotions offering up to a 3.5 million KRW discount for electric vehicle buyers and support for charger installation costs, while Hyundai Motor introduced a policy offering up to a 300,000 KRW discount for residents of newly built apartments equipped with electric vehicle chargers. Earlier, KG Mobility lowered the launch price of the Torres EVX by 2 million KRW compared to the pre-order price.
Hyundai Motor and Kia: Domestic Sales Decline, Exports Maintained
Hyundai Motor sold 62,504 units in the domestic market in March, down 16% from the same month last year. The best-selling Hyundai vehicle last month was the Porter (8,032 units). Following were the Santa Fe (7,884 units), Grandeur (6,100 units), and Avante (4,188 units) at the top of the sales rankings. Genesis sold 11,893 units, centered on popular models such as the G80 and GV80. Overseas, Hyundai sold 306,628 units, a 0.6% decrease compared to the same month last year.
During the same period, Kia sold 49,006 units, down 7.6% year-on-year. The best-selling Kia vehicle last month was the Sorento (8,974 units). Overseas, Kia sold 222,705 units, a 1.2% decrease compared to the previous year. The Sportage became the best-selling model overseas with 46,988 units sold.
Mid-sized Three Companies: Renault and KG Struggle, Only GM Smiles
The three mid-sized domestic automakers?KG Mobility, Renault Korea, and Korea GM?failed to escape sluggishness in the domestic market in March. KG Mobility sold 4,702 units, about half compared to the previous year, while Renault Korea and Korea GM each recorded monthly sales around 2,000 units.
In particular, Renault Korea, which has not released a new car for four years since the XM3 in 2020, has been suffering from continuous sales declines since last year. Last year, the average monthly domestic sales were about 1,837 units, roughly half compared to the previous year, and in the first quarter of this year, sales decreased by about 20% year-on-year. Renault Korea plans to launch the first model of the 'Aurora Project,' a hybrid mid-size sport utility vehicle (SUV), in the second half of this year. Until the new model is released, it appears they will have to continue enduring a difficult period.
KG Mobility recorded its highest monthly export sales in seven months with 6,000 units sold. This was the result of aggressive marketing efforts such as test drive events for the electric vehicle Torres EVX in countries like Turkey and New Zealand. However, domestic sales dropped to half the previous year's level (4,704 units), dragging down overall company performance. KG Mobility expects to recover domestic sales quickly once deliveries of the Torres EVX electric vehicle begin in earnest from March.
Korea GM showed remarkable performance in overseas markets. Although Korea GM also experienced domestic sluggishness, it significantly increased exports, boosting overall sales performance. In March, Korea GM sold 49,350 units overseas, a 26% increase year-on-year. This is the highest monthly sales volume since December 2013. At the same time, it has maintained an increase in overseas sales for 24 consecutive months compared to the previous year. In particular, the Chevrolet Trax crossover (including derivative models) led the performance with sales increasing 101% year-on-year to 27,395 units.
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