Sales of 5 Domestic Car Manufacturers Including Hyundai Motor
6% Decrease YoY to 1.36 Million Units... Lowest Since 2008
Last year, the domestic sales volume of five Korean automakers dropped to the lowest level since 2008. This is attributed to low expectations for economic recovery and extremely weakened consumer sentiment due to various internal and external factors.
On the 3rd, the combined domestic sales volume of five automakers?Hyundai Motor Company, Kia, Korea GM, KG Mobility, and Renault Korea?was recorded at 1,362,792 units last year. This represents a 6.4% decrease compared to 2023 (1,455,593 units).
Compared to other years, last year's domestic sales volume was relatively low. It shrank to 1.15 million units in 2008, when it was hit hard by the global financial crisis, but except for one or two years since then, it has consistently remained above 1.4 million units.
Stockyard next to the export shipment dock at Hyundai Motor Company's Ulsan Plant. Photo by Yonhap News Agency
Since 2015, sales exceeded 1.5 million units, and even surpassed 1.6 million units in 2020. These five automakers account for about 85% of the entire domestic new car market, including imported cars.
By company, Hyundai Motor Company (including Genesis) sold 705,010 units, down 7.5% from the previous year, and Kia sold 546,096 units, a 4.1% decrease. Korea GM's domestic sales last year were 24,824 units, down 35.9%. KG Mobility also sold 47,046 units domestically, a 25.7% decrease. On the other hand, Renault Korea sold 39,816 units, an increase of more than 80% due to new car launches.
The industry had anticipated that the domestic new car market would shrink last year. As the accumulated demand during the COVID-19 period caused by production disruptions was resolved, most models were delivered shortly after ordering without waiting periods. Both Hyundai Motor Company and Kia, the largest automakers, set their annual sales targets for last year lower than those for 2023.
Following the strong dollar, the impeachment political turmoil, and the Jeju Air disaster, consumer sentiment is expected to weaken further, making the economy more difficult. Last year on the 31st, the underground shopping mall in Sogong-dong, Jung-gu, Seoul, showed a quiet scene. Photo by Jo Yong-jun
Electric vehicles, which had shown steady growth, also stalled last year. Electric vehicle sales accounted for about 10% of total new car sales. Their high price and unresolved charging inconveniences continue to be obstacles.
The total sales volume, including exports, was recorded as slightly decreased. By company, Hyundai Motor Company sold 4,141,791 units, down 1.8% during the same period. Kia recorded 3,089,457 units, a 0.1% increase, setting a new all-time annual sales record.
Korea GM saw exports recover, selling 499,559 units, the highest since 2017. Renault Korea sold 106,939 units, up 2.6% from the previous year, while KG Mobility sold 109,424 units domestically and internationally, down 5.7%. The combined domestic and international sales volume of the five companies was 7,947,170 units, a 0.6% decrease during the same period.
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