Cruel April 'Export Cliff' for Complete Vehicles... Only Domestic Market to Rely On

Corona Paralyzes US and European Market Sales
April Overseas Sales of 5 Domestic Automakers Down 63%
Domestic Sales Expand 6% with Stabilized Quarantine
April Domestic Imported Cars Also Up 26%

[Asia Economy reporters Su-yeon Woo and Ji-hee Kim] In April this year, while the complete vehicle industry faced an export cliff due to the impact of the novel coronavirus infection (COVID-19), the domestic market showed steady demand and performed well. Although production and sales overseas came to a complete halt, the domestic market, which entered a stable quarantine phase from April, confirmed steady demand thanks to the effect of new car launches. The imported car market sold domestically also escaped the 'COVID-19 influence zone' and rather saw an increase in sales in April.

According to the Korea Automobile Importers & Distributors Association (KAIDA) on the 7th, domestic imported car sales in April this year reached 22,945 units, an increase of 25.9% compared to the previous year. Although global automakers' overseas factories gradually suspended operations due to COVID-19, it appears that domestic sales in April proceeded smoothly with pre-secured import volumes.

Mercedes-Benz maintained its unshakable first place among imported car brands with sales of 6,745 units, followed closely by BMW with 5,123 units sold. The most fiercely competitive third place in the industry was taken by Audi (2,043 units), which aggressively launched more than five new models this year. By model, the best-selling imported car last month was Volkswagen's mid-size sport utility vehicle (SUV) Tiguan 2.0 TDI (1,180 units). By country, sales of Japanese imported cars dropped by more than 64% year-on-year due to the ongoing boycott, while sales of American and European brands increased by 10% and 70%, respectively.

During the same period, domestic car brands also showed an increase in domestic sales compared to the previous year, with Kia Motors (20%), Renault Samsung (78%), and GM Korea (4%) confirming the new car effect that overcame COVID-19. The third-generation new Sorento led Kia's domestic sales performance with 9,270 units sold, and Renault Samsung set a record of exceeding 10,000 units in domestic sales for two consecutive months thanks to the new XM3 (6,276 units). GM Korea also continued its strong performance with the addition of the Trailblazer (1,757 units) and Traverse (263 units).

On the other hand, last month, overseas sales of the five domestic automakers (Hyundai, Kia, Renault Samsung, GM Korea, SsangYong) plunged 62.6%, realizing the export cliff. This was due to the fact that sales networks in major markets such as the United States and Europe were virtually paralyzed during April, when COVID-19 was spreading rapidly.

Hyundai, hit hard by COVID-19, recorded overseas sales of 88,037 units in April, down 70.4% year-on-year, and Kia also dropped 54.9% to 83,855 units. Hyundai's monthly overseas sales falling to around 80,000 units is the first time since July 2003, and Kia also recorded its lowest monthly performance since August 2009. The export performances of three foreign-affiliated domestic automakers?Renault Samsung (-72.5%), GM Korea (-32.8%), and SsangYong (-67.4%)?also showed double-digit declines.

An industry official said, "In a situation where it is unknown when the influence of COVID-19 will disappear in overseas markets, it seems necessary to focus on the domestic market, where there is still demand for new cars, to overcome the crisis."

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