'COVID-19 Shock' February Car Sales Barely Reach 500,000 Units... 11% Decrease YoY (Comprehensive)

Five Major Automakers Sell 505,212 Vehicles in February

[Asia Economy Reporter Kim Ji-hee] In February, the global sales of five domestic automakers in South Korea decreased by more than 10% compared to the same period last year. Due to the impact of the novel coronavirus disease (COVID-19), factories were unable to operate normally, and consumer sentiment weakened, causing both domestic and export sales to sharply decline.

According to industry sources on the 2nd, the global sales volume of the five domestic automakers (Hyundai Motor Company, Kia Motors, SsangYong Motor, GM Korea, and Renault Samsung Motors) in February was recorded at 505,212 units, down 11% from the previous year. In particular, domestic sales of Hyundai and Kia, which suffered significant production setbacks last month due to parts supply issues, fell by 26.4% and 13.7%, respectively. Hyundai Kia Motors announced on the same day that the production loss at domestic plants due to parts supply difficulties during this period was about 120,000 units (80,000 units for Hyundai and 40,000 units for Kia).

SsangYong Motor barely reached the 5,000-unit mark in domestic sales due to overall sluggishness in the domestic market, and Renault Samsung, struggling with new car export allocation amid ongoing labor-management conflicts since last year, saw its exports halved.

◆ Hyundai Motor, Domestic Sales Down 26.4% Year-on-Year Due to ‘Direct Hit from COVID-19’

In February, Hyundai Motor sold 39,290 units domestically and 235,754 units overseas, totaling 275,044 units worldwide. Compared to the same period last year, domestic sales decreased by 26.4%, and overseas sales fell by 10.2%. This performance was affected by production disruptions caused by COVID-19 and a global demand contraction.

In the sedan market, the Grandeur led domestic sales with 7,550 units sold, including 842 hybrid models. This was followed by the Sonata with 5,022 units (including 195 hybrid models) and the Avante with 2,575 units, totaling 15,507 sedans sold. The premium brand Genesis recorded sales of 549 units for the G70, 783 units for the G80, and 683 units for the G90.

For recreational vehicles (RVs), the Santa Fe sold 2,978 units, the Palisade 2,618 units, and the Tucson 1,534 units. The Genesis GV80, the brand’s first sports utility vehicle (SUV), recorded 1,176 units last month.

Overseas markets saw sales of 235,754 units last month, down 10.2% year-on-year. Despite strong sales in advanced markets such as North America and Europe, overall sales declined due to the contraction of the Chinese market.

Genesis GV80 (Photo by Genesis)

◆ Kia Motors, Domestic Sales Down 13.7% Year-on-Year... "Plan to Make Up for Production Shortfall with Overtime Work This Month"

Kia Motors sold 187,844 units globally during this period, down 5% from the same period last year (28,681 units domestically and 159,163 units overseas). Compared to the same period last year, domestic and overseas sales decreased by 13.7% and 3.2%, respectively. Since deliveries could not be made for the contracted units due to production disruptions last month, the company plans to quickly recover the lost production through overtime work and other measures in March.

The best-selling model in the domestic market was the K5 with 4,349 units, marking the top monthly sales for Kia for three consecutive months. Passenger car sales totaled 13,552 units, including 3,310 units of the Morning and 2,851 units of the K7. Among RVs, the Seltos was the best-seller with 2,869 units, followed by the Carnival with 2,510 units, Sorento with 1,998 units, and Niro with 1,935 units.

Overseas sales decreased by 3.2% year-on-year due to the direct impact of weakened consumer sentiment in the Chinese market. By model, the Sportage was the top-selling overseas model with 24,390 units, followed by the Seltos with 22,260 units and the Rio (Pride) with 19,428 units.

◆ SsangYong Motor Sold 7,141 Units in February... Domestic Sales Plummet 32.7% Year-on-Year

SsangYong Motor sold a total of 7,141 units in February, including 5,100 units domestically and 2,041 units exported. The combined effect of wiring harness supply disruptions caused by the COVID-19 outbreak in China, a seven-day production halt, and a sluggish automobile market led to a 27.4% decrease compared to the same period last year.

In the domestic market, sales shrank by 32.7% year-on-year due to production disruptions and weakened consumer sentiment caused by the spread of COVID-19. Except for the Korando, which was launched at the end of February last year, sales of all models declined. Exports increased by 7.3% year-on-year based on finished vehicles due to strong local sales of the Korando M/T model in Europe, but overall exports decreased by 9.8% due to a decline in CKD (completely knocked down) exports.

SsangYong plans to expand export volumes by strengthening customized marketing activities through participation in major regional motor shows in Europe, starting with the Brussels Motor Show in Belgium in January and the Vienna Auto Show in Austria. Additionally, the company intends to increase sales in the domestic market by expanding various customer contact marketing and events.

Chevrolet Trailblazer (Photo by Korea GM)

◆ GM Korea Holds Up Domestically with ‘Trailblazer’ Addition... Exports Down 16%

GM Korea sold 28,126 units globally last month (4,978 units domestically and 23,148 units exported). Despite the off-season in the industry and adverse factors such as COVID-19, domestic sales only fell by 3.8% year-on-year, thanks in part to deliveries of the Trailblazer, which was launched earlier this year.

Exports last month were 23,148 units, down 16% year-on-year. Overall sales declined by 14%.

In the domestic market, the Chevrolet Spark was the best-selling model with 2,115 units sold. The Chevrolet Trailblazer recorded 608 units despite a short sales period. Imported Chevrolet models such as the Bolt EV, Traverse, Colorado, Equinox, and Camaro SS each sold over 1,000 units last month, maintaining strong sales.

◆ Renault Samsung’s Exports Halved in February Due to ‘Delayed New Car Allocation’

Renault Samsung sold 3,673 units in the domestic market in February, down 25.4% year-on-year. Exports were 3,384 units, about half of the same period last year.

Domestic sales were weakened by COVID-19, with the main models SM6 and QM6 selling 731 and 2,622 units, respectively. SM6 sales decreased by 31.1% year-on-year, while QM6 sales increased by 15%. The Renault Master bus also recorded 73 units delivered in February.

However, exports in February totaled 3,384 units, down 50.2% year-on-year, including 1,900 units of the Nissan Rogue for North American export, 1,340 units of the QM6, and 144 units of the Renault Twizy.

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