Five Domestic Car Manufacturers Smiled in April Export Market

This April, exports compensated for the sluggish domestic sales of the five major Korean automakers. Not only Hyundai Motor and Kia, but also the three mid-sized companies?Korea GM, Renault Korea, and KG Mobility?showed an increase in export performance compared to the previous year.

According to industry sources on the 2nd, overseas sales of the five domestic automakers in April reached 552,197 units, a 5% increase compared to the same month last year. In contrast, domestic sales decreased by 7% to 118,978 units.

The total global sales volume, combining domestic and export sales, was 671,175 units, a 2% increase from the previous year. Although sales increased compared to the previous month (March), which was around 580,000 units, it fell short of the 700,000 units record set in April last year.

In April, exports from Hyundai Motor, Kia, and the three mid-sized companies all showed favorable trends. Hyundai Motor sold 282,107 units overseas, a 5% increase from the previous year, while Kia recorded overseas sales of 213,081 units, up 1.6%.

In particular, Korea GM continued its 25-month streak of year-on-year export growth, driven by exports of the Chevrolet Trax crossover and Trailblazer, which are popular in the U.S. compact SUV market. The Chevrolet Trax crossover (including derivative models) led the performance by selling 26,134 units overseas in April alone, a 96.3% increase compared to the same month last year.

Chevrolet Trax crossover waiting for loading at the pier
[Photo by Korea GM]

Renault Korea exported 8,792 units overseas in April, returning to a year-on-year growth trend after a long time. The Arkana accounted for most of the exports, with hybrid models making up more than half at 4,698 units.

KG Mobility has recorded export growth for four consecutive months this year. In April alone, it exported 6,088 units, a 40% increase compared to the same month last year. KG Mobility is accelerating its marketing efforts by holding global test drive events in regions including Europe, such as Turkey and Hungary, and the Asia-Pacific region including Australia.

Meanwhile, the domestic sales performance of the five Korean automakers in April was 118,978 units, down about 7% compared to the same month last year. This marks the third consecutive month of year-on-year decline in monthly domestic sales for the five companies.

In April, Hyundai Motor’s domestic sales decreased by about 4% year-on-year, Kia by 3%, and Renault Korea by 1%. KG Mobility and Korea GM saw significant drops of approximately 34% and 56%, respectively.

The decline is attributed to reduced new car demand due to recent high interest rates and high inflation, as well as a slowdown in electric vehicle sales. Even for hybrid models, which still have market demand, sales were delayed due to delivery delays. Brands without new hybrid models are facing increasing difficulties in domestic sales.