"At Least Grateful"... New Car and SUV Effects Shine Despite COVID-19

[Asia Economy Reporter Kiho Sung] Amid the global automotive industry taking a direct hit from the impact of the novel coronavirus infection (COVID-19), the domestic finished car industry's April performance also halved. However, companies boosted by new cars and sports utility vehicles (SUVs) managed to hold their ground in the domestic market.

According to five domestic finished car companies on the 7th, the total car sales in April were 145,141 units domestically and 196,803 units exported, totaling 341,944 units. This figure represents a 48.4% decrease compared to the same period last year. However, while exports dropped by 62.6%, domestic sales increased by 6.5%.

The reason domestic sales held up relatively well can be found in new cars and SUVs. Renault Samsung Motors recorded 11,015 units sold domestically in April, a sharp increase of 78.4% compared to the same period last year. This was due to the effect of the compact SUV XM3, launched in March, which sold 6,276 units last month. The XM3 single model accounted for more than half of Renault Samsung's sales in April.

Another SUV from Renault Samsung, the QM6, sold 3,576 units. Although this was a decrease compared to the previous month, it showed a 29.9% increase compared to the same period last year. The QM6 has steadily gained popularity since March last year when regulations were relaxed to allow the general public to purchase LPG vehicles. Since March last year, the QM6 LPG model has sold 30,069 units, ranking second in total LPG passenger car market sales.

Korea GM also saw a 4.2% increase in domestic sales in April compared to the same period last year. Among these, the compact SUV Trailblazer, launched in January this year, led domestic sales with 6,706 units sold. The Trailblazer also sold 11,762 units in exports.

Kia Motors greatly benefited from the effect of the new SUV Sorento. The new Sorento sold 9,270 units in April alone, helping Kia's domestic sales increase by 19.9% compared to the same period last year.

Hyundai Motor Company, although not an SUV, saw the Avante, launched last month, sell 8,249 units, achieving the highest sales performance in 3 years and 10 months since June 2016. Thanks to this, domestic sales only fell by 0.5% compared to the same period last year.

On the other hand, SsangYong Motor, which did not benefit from the new car effect, saw its April performance halved. SsangYong's domestic and overseas sales in April totaled 6,813 units, a 46.4% decrease compared to the same period last year. Domestic sales were 6,017 units, down 41.4% year-on-year, and exports sold 796 units, down 67.4% compared to the same period last year.

An automotive industry official explained, "Due to the impact of COVID-19, overseas sales markets are virtually paralyzed, and currently, only domestic sales are operating normally. Until the global market normalizes, we have no choice but to rely on the new car effect."

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