COVID-19 Direct Hit... Complete Vehicle Industry's Sales Collapse to 7 Million Units Last Year (Comprehensive)

7.92 million units in 2019 followed by 6.94 million units in 2020
First annual decline in a decade with a 1 million unit drop due to global sales slump

[Asia Economy Reporter Kiho Sung] Last year, the global sales volume of five domestic finished car manufacturers fell below the 7 million unit mark. Although domestic sales showed an upward trend due to new car launches and the extension of the individual consumption tax reduction, exports significantly decreased due to the impact of the novel coronavirus infection (COVID-19).

According to the industry on the 4th, last year, the five domestic finished car manufacturers (Hyundai, Kia, Ssangyong, Renault Samsung, and Korea GM) sold a total of 6,942,886 units, down 12.4% compared to the previous year in both domestic and overseas markets. After sales fell below 8 million units with 7,926,132 units sold last year, the volume decreased by nearly 1 million units in just one year.

The global sales volume of the five domestic finished car manufacturers, which first surpassed 9 million units in 2015, dropped back to the 8 million unit level in 2016, fell below 8 million units in 2019, and eventually declined to the 6 million unit level.

Last year, the global sales volume of the five manufacturers was greatly affected by sluggish exports. Their exports recorded 5,335,851 units, down 16.5% from the previous year, with Renault Samsung (-77.7%) and Ssangyong (-28.8%) showing particularly large negative declines. Hyundai and Kia also decreased by 19.8% and 8.7%, respectively.

In the domestic market, all companies except Ssangyong showed an increase, rising 4.8% to 1,607,035 units.

Hyundai Motor, Domestic Sales Up 6.2% but...

Hyundai Motor sold a total of 3,743,514 units worldwide in 2020, including 787,854 units domestically and 2,955,660 units overseas. Compared to 2019, domestic sales increased by 6.2%, while overseas sales decreased by 19.8%. Overall, sales declined by 15.4%.

In domestic sales, the sedan Grandeur led with 145,463 units sold. Notably, the Grandeur surpassed 100,000 units in annual sales for four consecutive years, setting a new record for the highest annual sales. SUVs sold a total of 213,927 units, including 64,791 units of the Palisade, 57,578 units of the Santa Fe, and 36,144 units of the Tucson.

Sales of eco-friendly vehicles also showed remarkable growth. Hybrid model sales increased by 48.7% compared to 2019, reaching 66,181 units. Electric vehicle sales rose by 18%, and hydrogen fuel cell vehicle (Nexo) sales increased by 38%.

Small commercial vehicles, including the Porter with 95,194 units sold and the Grand Starex with 36,190 units, totaled 131,384 units sold. Large commercial vehicles, including medium and large buses and trucks, sold 27,069 units.

The premium brand Genesis was led by the G80 with 56,150 units sold, followed by the GV80 with 34,217 units, the G90 with 10,900 units, and the G70 with 7,910 units, totaling 108,384 units sold.

A Hyundai Motor official stated, “To overcome the crisis caused by the COVID-19 pandemic, we have prepared regional response measures and will continue proactive risk management efforts to minimize negative impacts.”

Kia Motors, Export Decline Limited to Single Digits

Kia Motors sold a total of 2,607,337 units last year, including 552,400 units domestically and 2,054,937 units overseas, down 5.9% compared to the previous year. Domestic sales increased by 6.2%, while overseas sales decreased by 8.7% compared to last year.

By model, the Sportage was the best-selling vehicle globally with 366,929 units sold, followed by the Seltos with 328,128 units and the K3 (Forte) with 237,688 units.

Domestically, the most sold vehicle in 2020 was the K5 with 84,550 units, followed by the Sorento with 82,275 units and the Bongo III with 61,906 units.

Overseas, the Seltos followed the Sportage with 278,647 units sold, and the K3 sold 214,251 units.

A Kia Motors official said, “The Seltos, which began sales in the second half of 2019, sold about 330,000 units globally and about 280,000 units overseas, widely recognizing the excellent product competitiveness of our vehicles. This year, we will achieve a major transformation into a new growth engine by launching competitive new models such as the next-generation electric vehicle equipped with an exclusive electric vehicle platform and the Sportage, along with a solid sales strategy.”

Ssangyong Motor, Decline in Both Domestic and Export Sales

Ssangyong Motor sold a total of 107,416 units last year, including 87,888 units domestically and 19,528 units exported. This represents a 20.6% decrease compared to 135,235 units sold in the same period in 2019.

By model, the Rexton Sports was the best-selling with 33,068 units. The Korando led export models with 7,116 units.

However, with the launch of new models such as the Tivoli Air and All New Rexton, along with various non-face-to-face strategies in response to the COVID-19 situation, sales recovered to 2019 levels from the second half of the year.

Ssangyong Motor stated that since the court has made a final decision on the suspension of the commencement of rehabilitation proceedings (ARS program), they will promptly reach visible results such as negotiating sales with new investors through agreements among related stakeholders.

Korea GM, Strong Export of Trailblazer Despite Overall Decline

Korea GM sold a total of 368,453 units in 2020, including 82,954 units domestically and 285,499 units exported. This is an 11.7% decrease from 417,226 units sold last year.

Domestic sales increased by 8.5% compared to the previous year, supported by continuous new model launches. The Spark sold 28,935 units, followed by the Trailblazer with 20,887 units.

Korea GM exported a total of 285,499 units globally in 2020, down 16.2%. However, exports in December increased by 24.9% year-on-year to 37,458 units, marking the highest monthly figure for 2020. Last month, the Chevrolet Trailblazer, along with its sibling model the Buick Encore GX, exported a total of 21,781 units, setting the highest monthly record of the year and achieving over 20,000 units exported in a single month for the second time since September.

XM3 Exported for the First Time, but Renault Samsung Overseas Sales Down 77.7%

Renault Samsung Motors sold a total of 116,166 units, including 95,939 units domestically and 20,227 units exported. Compared to the same period last year, domestic sales increased by 10.5%, but exports decreased by 77.7%, resulting in an overall decline of 34.5%.

In domestic sales, the QM6 led with 47,640 units sold, followed by the XM3 with 34,091 units.

In exports, the QM6 sold 13,300 units, and the XM3, which began its first European export last month, sold 909 units. The XM3 is expected to be Renault Samsung's main export model.

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