Hyundai Kia Motors Faces Prolonged Slump in Chinese Market... September Market Share at 3.3%

[Asia Economy Reporter Su-yeon Woo] Hyundai Kia Motors' sluggish performance in the Chinese market is becoming prolonged. While the overall industrial demand in the Chinese market, which had sharply declined due to the novel coronavirus infection (COVID-19), is showing signs of recovery, Hyundai Kia Motors is struggling to increase its market share.

According to the China Passenger Car Association on the 17th, Hyundai Kia Motors sold 63,500 units in the Chinese market in September this year based on retail sales, recording a market share of 3.3%. Beijing Hyundai sold 42,000 units, a 30% decrease compared to the previous year, while Dongfeng Yueda Kia sold 21,500 units, a 17% increase. Although Dongfeng Yueda Kia's sales slightly increased compared to the previous year, this is interpreted as a base effect due to the significant drop in sales in September last year (18,400 units).

Retail Sales in China by Major Companies in September / Data provided by Hana Financial Investment

During the same period, retail sales in the entire Chinese automobile market reached 1,939,000 units, a 7% increase compared to the previous year, showing a continuous increase for five consecutive months except for June. Volkswagen maintained its number one position with a 19.4% market share, while Chinese local brands BYD (2.2%), Changan Automobile (5.2%), and Great Wall Motors (4.7%) increased their market shares compared to the previous month.

Looking at model shipments in the Chinese market, Hyundai's Chinese factory shipped 9,600 units of the China-specific compact sedan Verna in September, the highest volume, followed by Elantra (7,400 units) and ix35 (7,000 units). At Kia's Chinese factory, the China-strategic sports utility vehicle (SUV) Zhipao was the most shipped with 7,500 units, followed by K5 (4,100 units) and K3 (4,000 units).

Researcher Su-hong Jo of NH Investment & Securities analyzed, "Hyundai Motor Group is restructuring its China business and reducing its dependence on the Chinese market by expanding sales in emerging markets," adding, "It is judged that the influence of the China business has been reduced compared to before."

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