Due to Sonata's sluggish sales... Hyundai Motor's Asan Plant to halt operations for ten days

Sonata Sales Continue to Decline, Down 30% Year-on-Year
Earlier Suspension Considered, Year-End and Early Year Volume Adjustments Planned

2020 Sonata (Photo by Hyundai Motor Company)

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor's Asan plant will halt operations until early next year. This is to adjust inventory levels amid continued sluggish sales of the Sonata.

According to industry sources on the 22nd, Hyundai Motor's Asan plant will be closed from the 23rd until the 6th of next month. Excluding the company anniversary holiday and other holidays, the plant will actually suspend operations for 8 business days.

This shutdown is due to the poor performance of the Sonata. Hyundai produces both the Sonata and Grandeur at the Asan plant, but the sales results of these two models have diverged significantly. Unlike the Grandeur, which has been so popular since early this year that it was said to be "sold out," Sonata sales have been sluggish. From January to November this year, Sonata sales totaled 63,078 units. While sales exceeded 100,000 units until last year, this year the figure is struggling to even reach 70,000 units.

Accordingly, Hyundai appears to be suspending the plant for 8 days to manage inventory. Approximately 300 Sonatas are produced daily at the Asan plant. By halting operations for 8 days, about 2,500 units of inventory can be reduced.

Previously, Hyundai proposed a five-day shutdown of the Asan plant to the labor union in November for the same reason. However, since production of the Grandeur, which is produced alongside the Sonata, would also have to stop, the actual shutdown did not take place.

There are several reasons why Sonata sales have not rebounded. Some point to the divisive design, but more fundamentally, many analyses see it as due to the shrinking market position of mid-size sedans. Amid the popularity of sport utility vehicles (SUVs) and stagnant demand for sedans, the trend toward preferring larger cars has increased the number of consumers choosing near-large sedans like the Grandeur, which seems to be holding back the Sonata.

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