January Vehicle Sales Down 6% Year-on-Year Due to Lunar New Year Holiday and Strikes (Comprehensive)

[Asia Economy Reporter Su-yeon Woo] In January this year, the global sales of five domestic automakers in South Korea declined by 6% year-on-year, with both exports and domestic sales decreasing. The reduction in working days due to the Lunar New Year holiday and the impact of the Renault Samsung Motors strike affected overall sales.

According to the industry on the 3rd, the global sales volume of five domestic automakers (Hyundai Motor Company, Kia Motors, SsangYong Motor, GM Korea, Renault Samsung) in January this year was 553,558 units, down 6% from the previous year. In particular, Renault Samsung, which has been suffering from a strike that even led to a lockout decision, recorded sales of only 6,233 units, a 54.5% decrease from the previous year, falling below 10,000 units.

GM Korea's exports halved compared to the previous year due to an overall decline in exports, and SsangYong Motor, which had shown strength in the domestic market until last year, saw its domestic sales in January drop by 36.8% to around 5,000 units.

Although the seasonal effect of the Lunar New Year holiday moving from February last year to January this year, resulting in fewer working days, played a significant role, even considering this, the decline in the domestic market for Hyundai (-21%), Kia (-2.5%), SsangYong (-36.8%), and Renault Samsung (-16.8%) appears to have deepened considerably compared to the previous year.

◆ Hyundai Motor Company, Domestic Sales Down 21% Year-on-Year Due to Holiday Impact and End of Individual Consumption Tax Cut

Hyundai Motor Company sold 47,591 units domestically and 256,485 units overseas in January this year, totaling 304,076 units worldwide.

Compared to the same period last year, domestic sales decreased by 21.3%, while overseas sales increased by 0.6%. The reduction in working days due to the Lunar New Year holiday was a major factor affecting Hyundai's domestic sales in January.

Sedans led domestic sales with the Grandeur (including 2,467 hybrid models) selling 9,350 units, Sonata (including 1,012 hybrid models) 6,423 units, and Avante 2,638 units, totaling 18,691 units. The premium brand Genesis sold a total of 3,000 units, with the G80 at 1,186 units, G90 at 830 units, and G70 at 637 units, marking a 43% decrease compared to the previous year.

In overseas markets, sales increased slightly by 0.6% compared to the same period last year, reaching 256,485 units. Despite the overall contraction in the automotive industry, sales rose modestly due to strong performance in North America, Central and South America, and Asia-Middle East markets.

◆ Kia Motors, Export Increase Despite Domestic Sales Decline Due to RV Effect

Kia Motors sold 37,050 units domestically and 178,062 units overseas in the global market in January this year, totaling 215,112 units, a 2.5% increase compared to the same period last year. Domestic sales decreased by 2.5%, while overseas sales increased by 3.6% compared to the previous year.

In the domestic market, Kia's sales declined year-on-year due to fewer working days caused by the Lunar New Year holiday. The best-selling vehicle was the K5, with 8,048 units sold, marking the highest sales record in 49 months since December 2015.

Kia K5

Among Kia's passenger car models, the K series, led by the strong sales of the K5, sold a total of 14,399 units, including the K3 (1,800 units), K7 (3,939 units), and K9 (612 units), representing a 25.4% increase compared to the previous year.

In overseas markets, the Sportage was the top-selling model with 29,996 units sold, followed by the Seltos with 25,499 units and the Rio (Pride) with 18,980 units.

◆ SsangYong Motor, 33% Decrease Year-on-Year Due to Holiday Effect and End of Individual Consumption Tax Cut

SsangYong Motor sold a total of 7,653 units in January, including 5,557 units domestically and 2,096 units for export. This performance represents a 33% decrease compared to the same month last year, affected by the overall automotive market downturn, the end of the individual consumption tax cut, and reduced working days due to the Lunar New Year holiday.

Domestic sales also showed a general decline due to seasonal off-peak factors and weakened consumer sentiment following the end of tax incentives, resulting in a 36.8% decrease compared to the same month last year. Exports also declined by 20.4% year-on-year due to the continued impact of previous sales decreases.

SsangYong Motor, having achieved domestic sales of 100,000 units for four consecutive years last year, plans to continue its recovery in the domestic market through aggressive sales strategies this year. Additionally, with the Korando gasoline and M/T models introduced at the Brussels Motor Show in January and ongoing launches in various overseas regions, the company aims to expand export volumes through strengthened global marketing activities.

◆ GM Korea, January Exports Halved Year-on-Year but Domestic Sales Hold Up

GM Korea sold 20,484 units globally in January, including 5,101 units domestically and 15,383 units for export. While domestic sales increased slightly by 0.9% year-on-year due to the successful establishment of new models launched in the second half of last year, exports plummeted by 54.3%.

Last month's exports consisted of 3,002 compact cars, 11,851 recreational vehicles (RVs), and 530 mid-to-large sedans, totaling 15,383 units.

In the domestic market, the Chevrolet Spark was the best-selling model with 2,589 units sold. The pickup truck Chevrolet Colorado saw a 20.3% increase from the previous month, selling 777 units. Notably, the Colorado recorded three consecutive months of sales growth, supporting domestic sales performance. Chevrolet's imported models such as the Traverse, Colorado, Equinox, Bolt EV, and Camaro SS each sold over 1,000 units last month, maintaining steady sales.

Chevrolet pickup truck Colorado

◆ Renault Samsung Suffering from Strike, Ranked Last in January Sales

Renault Samsung sold 4,303 units domestically in January, a 16.8% decrease compared to the same period last year. Exports during the same period dropped sharply by 77.3% to 1,930 units. Due to the impact of strikes including partial lockouts last month, global sales for the month halved year-on-year to 6,233 units, a 54.5% decrease.

In the domestic market, the QM6 was the best-selling model with 3,540 units sold, a 24.4% increase compared to the same period last year. Notably, the LPe model, the only LPG SUV in Korea, sold 2,589 units, accounting for 73.1% of total QM6 sales in January.

Renault Samsung's January exports consisted of 1,230 Nissan Rogue units for North American export, 525 QM6 units, and 175 Twizy units, totaling 1,930 units, a 77.3% decrease compared to the previous year.

This content was produced with the assistance of AI translation services.