[Liquidity Crisis in Cars] 'Corona Shock' Hyundai Motor's US Sales Plummet to 10-Year Low

Hyundai Motor's U.S. Sales in March Down 42% Year-on-Year
Lowest Monthly Sales Since February 2010
Five Domestic Automakers' Overseas Sales Also Down 20% in March
COVID-19 Impact Realizes Overseas Market Sales Cliff

[Asia Economy Reporter Su-yeon Woo] As the novel coronavirus infection (COVID-19) spreads worldwide, Hyundai Motor's monthly sales volume in the U.S. market has plummeted to levels seen 10 years ago. This is due to reduced market demand caused by the COVID-19 crisis and production disruptions from the suspension of operations at local factories.

Hyundai Motor America (HMA) announced on the 1st (local time) that it sold 36,087 units (including Genesis) in the U.S. market in March this year, a 42.4% decrease compared to the previous year. This is the lowest monthly sales figure in 10 years and 1 month since February 2010 (34,004 units).

From March this year, as COVID-19 infections rapidly increased in the U.S., market demand sharply froze, delivering a direct blow to sales. The suspension of operations at the Alabama plant for three weeks starting from the 18th of last month due to the COVID-19 crisis was also a painful factor. This meant that even the vehicles that could meet the remaining demand were not produced. Consequently, the expansion of Hyundai's market share in the U.S., which had gained momentum with double-digit growth (15.8%) in February, was also halted.

By model, all vehicle types sold in the U.S. decreased by about 40-70% compared to the previous year, and sales of the main model Avante (local name Elantra) were cut in half compared to the previous year. Avante sales, which reached 15,000 units in the same month last year, dropped 53% to 7,430 units in March this year. The sport utility vehicles (SUVs), which had recently driven performance, were also not immune to the impact of COVID-19. Kona sales fell 45% year-on-year to 3,874 units, Tucson sales dropped 49% to 6,073 units, and Santa Fe sales plunged 42% to 6,358 units.

During the same period, Kia Motors' U.S. sales also fell 19% year-on-year to 45,413 units. The K5 (local name Optima) sales decreased by 12% compared to the previous year, and main models such as Sorento (-40%), Soul (-46%), and Sportage (-17%) showed overall sluggish sales.

Due to the COVID-19 shock, demand decreased not only in the U.S. but also overseas in general, causing the overseas sales performance of five domestic carmakers to shrink in March. Overseas sales of the five companies?Hyundai, Kia, SsangYong, Renault Samsung, and GM Korea?amounted to 446,801 units in March, down 21% year-on-year. However, domestic sales increased by 9.2% to 151,025 units as supply, which had been delayed due to the suspension of domestic factory operations in February, was restored.

With the export route blocked due to decreased overseas market demand, concerns are emerging that liquidity crises for domestic finished car manufacturers could become a reality starting in April. In particular, the three foreign-invested companies continue to incur fixed costs such as labor expenses, but with sharply reduced sales, it is burdensome to keep domestic factories running continuously. SsangYong Motor, which has already suffered chronic deficits and requested government financial support, decided to suspend operations on some lines for ten days starting from this day in April, depending on parts supply, following a similar suspension in February.

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