March European Car Market 'Halved'... Hyundai Kia's Market Share Rises

[Asia Economy Reporter Suyeon Woo] In March this year, European car sales shrank to half the level of the previous year due to the novel coronavirus disease (COVID-19). Although Hyundai Kia Motors also saw a decline in sales volume, its market share actually increased.

Sales decline is expected to continue in April due to the impact of COVID-19, but as Hyundai Kia Motors' European factories are gradually resuming operations, the recovery trend will need to be monitored.

According to the European Automobile Manufacturers Association (ACEA) on the 18th, the European car market (EU and EFTA countries, including the UK) sold 853,077 units in March, down 51.8% from the previous year. The total sales volume of the European market halved from about 1.77 million units in March last year.

During the same period, Hyundai Kia Motors' sales were 67,173 units, down 41.8% year-on-year. Considering the overall market situation in Europe affected by the spread of COVID-19, this is regarded as a relatively strong performance. Market share in March rose by 1.4 percentage points from 6.5% in March last year to 7.9% this year.

The increase in Hyundai Kia Motors' market share was due to the relatively larger sales declines of competitors. Most global automakers such as FCA Group (-74%), PSA Group (-67%), Renault Group (-64%), and Ford (-61%) were directly hit by the consumption contraction caused by COVID-19.

Based on the first quarter of this year, total sales in the European market decreased by 26.3% to 3,054,703 units, while Hyundai Kia Motors sold 221,889 units, down 18.8% during the same period. Hyundai Kia Motors' market share in the first quarter of this year was 7.3%, up 0.7 percentage points from the same period last year.

Kia Motors' European strategic model XCeed (XCeed)

If the spread of COVID-19 does not show signs of subsiding in April, it will be difficult for sales in the European market to recover. However, production is expected to gradually increase as some European automakers have recently resumed operations.

According to foreign media, Volkswagen will restart its factories in Germany and Slovakia from the 20th, and resume production at factories in Portugal, Russia, and Spain from the 27th. Audi's Hungary plant resumed partial line production from the 14th, and Volvo's Sweden plant from the 15th.

Earlier, Hyundai Kia Motors also restarted its Hyundai Motor Russia plant from the 13th, and Hyundai Motor's Czech plant resumed operations from the 14th. Kia Motors' Slovakia plant began normal operations much earlier, from the 6th.

Song Seonjae, a researcher at Hana Financial Investment, said, "With the partial resumption of production by European automakers starting in April, the rate of sales decline is likely to gradually ease," adding, "The expansion of electric vehicles in the European market will continue, but there is a possibility of regulatory easing, so sales speed adjustments according to policies are expected."

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