Hyundai Kia Motors to Drive New Cars in the Second Half of This Year

Hyundai Kia Motors to Launch 9 New Domestic Models in Second Half
Genesis GV70 and Kia Carnival Included
US Market Sales Target Up 25% from First Half

Overseas Sales Plummet in Q2 Due to COVID Impact
Operating Profit Down 52% for Hyundai, 72% for Kia

[Asia Economy Reporters Susyeon Woo, Jihee Kim] Hyundai Kia Motors will implement an aggressive new car introduction strategy from the second half of the year to make up for the sharp decline in first-half performance caused by the novel coronavirus infection (COVID-19).

According to the industry on the 24th, Hyundai Kia Motors plans to launch a total of 9 new models in the domestic market in the second half of this year. Hyundai Motor will continue to expand sales focused on sport utility vehicles (SUVs) with the release of the partial facelift Santa Fe, the complete redesign Tucson, and the partial facelift Kona, while Genesis, which achieved successful results in the domestic market in the first half of this year, will strengthen its lineup with the partial facelift G70 and the launch of the GV70.

Kia Motors plans to launch the 4th generation model of the multipurpose vehicle (MPV) Carnival next month, and will continue the success of the Sorento in the first half by unveiling the complete redesign Sportage and the partial facelifts of the Stinger and Stonic. In addition, new models such as the Avante, GV80, G80, and Sorento, which were introduced in the domestic market in the first half, are preparing for overseas launches one after another. Kia Motors plans to launch the newly added small SUV Sonet in the lineup in September in the Indian market.

The catalyst for Hyundai Kia Motors' sales recovery in the second half is expected to be the U.S. market. Hyundai Motor has set its sales target for the U.S. market in the second half at about 350,000 units, a 25% increase compared to the first half. The Genesis GV80 and G80, which gained explosive popularity in Korea, are preparing to enter the U.S. market in the second half, and Kia Motors has increased the production volume of the Telluride from about 80,000 units annually to about 100,000 units annually starting this month in line with the recovering demand.

Kim Sang-hyun, Executive Vice President and Head of Hyundai Motor's Finance Division, said, "In the second half, we expect a recovery compared to the first half based on global demand improvement and new car launches in overseas regions," adding, "We will leverage the prepared new car lineup to utilize momentum in key markets to enhance market share and improve qualitative sales."

Meanwhile, Hyundai Kia Motors' performance in the second quarter was directly affected by COVID-19. Although the domestic market performed well and boosted results, it was insufficient to offset the decline in exports. Hyundai Motor's second-quarter sales amounted to 21.859 trillion KRW, down 18.9% year-on-year, and operating profit fell 52.3% to 590.3 billion KRW, nearly halving. Kia Motors' sales were 11.3688 trillion KRW, and operating profit was 145.1 billion KRW, plunging 21.6% and 72.8%, respectively.

In the second quarter, Hyundai Motor's overseas sales were 478,424 units, down 47.8% year-on-year, while Kia Motors sold 354,502 units, down 27.8%. By market, Hyundai Motor showed double-digit sales declines compared to the previous year in all regions except the domestic market, including North America (-37%), Europe (-52%), India (-77%), and China (-16%). Kia Motors also saw sharp declines in North America (-40%) and Europe (-50%).

On the other hand, in the domestic market, which successfully responded to COVID-19 prevention, sales actually increased during the same period thanks to the new car effect. Hyundai Motor's domestic sales in the second quarter were 225,552 units, up 12.7%, and Kia Motors' were 161,548 units, up 26.8%. In particular, the Genesis brand received a good response in the domestic market, recording the highest ever share (16.2%) of Hyundai Motor's domestic sales in the second quarter.

Joo-Jeong Joo, Executive Vice President and Head of Kia Motors' Finance Division, said, "There is regret that if it were not for the external variable of COVID-19, we would have recorded the highest level of profit ever this year," adding, "Having completed fundamental structural improvements such as mix improvement and cost reduction, and assuming market normalization in the second half, sales exceeding last year's level can also be expected."

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