Hyundai Motor and Kia Achieve Highest Global Auto Sales Growth Rate Last Year

Automobile Research Institute, Major Complete Vehicle Groups Performance Analysis
Sales Volume Rises One Rank for 2 Consecutive Years to 4th Place...Revenue 5th Place

Chairman Chung Euisun of Hyundai Motor Group presenting at the press conference held during CES in January this year

[Asia Economy Reporter Choi Dae-yeol] It has been revealed that the sales growth of Hyundai Motor Group's finished car companies (Hyundai Motor Company and Kia) last year was among the highest levels worldwide among leading automakers. Despite production disruptions across the entire automotive industry due to supply chain crises caused by COVID-19, profitability mostly improved as companies shifted business strategies or increased sales of high-priced vehicles.

According to last year's major automaker group performance data published on the 28th by the Korea Automotive Research Institute, Hyundai Motor Company and Kia's sales last year were approximately $163.7 billion, marking an 18.4% increase compared to the previous year. Hyundai Motor Company accounted for about $102.7 billion, and Kia about $60.1 billion. The sales growth rate of Hyundai Motor Company and Kia was the highest among the top 10 automakers. The research institute analyzed that this was due to increased sales of relatively expensive eco-friendly vehicles such as electric cars, expansion of sales of the high-end brand Genesis, and favorable exchange rate effects from the strong dollar.

In terms of annual sales growth rate, following Hyundai Motor Company and Kia were BMW (16.4%), Volkswagen (16.3%), Stellantis (15.6%), Suzuki (14.4%), Toyota (12.9%), and Mercedes-Benz (12.8%). Tesla, ranked around 20th in sales volume, showed an exceptionally high annual sales growth rate of about 70.7%. The company with the largest sales amount was Volkswagen, estimated at approximately $295.7 billion. Based on sales amount, Hyundai Motor Company and Kia ranked fifth, following Volkswagen, Toyota ($281.7 billion), Stellantis ($176.6 billion), and Mercedes-Benz ($198.5 billion).

Global Major Automakers' Sales Volume and Financial Performance

In terms of sales volume by manufacturer group, Hyundai Motor Company and Kia sold 6.67 million units, ranking fourth. They rose one rank from sixth in 2019 to fifth in 2020, and climbed another step last year. U.S. General Motors (GM) was fourth in 2020 with 6.83 million units but dropped to sixth last year. The top-selling maker was Toyota, which uniquely surpassed 10 million units with about 10.5 million sold. Volkswagen (8.58 million units) and Renault-Nissan (7.79 million units) followed. In market share, Toyota increased by 0.6 percentage points to 12.9% compared to the previous year, while Volkswagen decreased by 1.2 percentage points to 10.6%. Hyundai Motor Company and Kia maintained a similar level at 8.2%.

Senior Researcher Yang Jae-wan of the Korea Automotive Research Institute explained, "Last year, the global finished car market saw increased sales volume due to demand recovery despite semiconductor supply shortages and rising raw material prices," adding, "Most automaker groups improved profitability by increasing sales of high value-added vehicle models and implementing cost reduction activities."

The research institute predicted that the market favoring manufacturers (suppliers) would continue steadily this year due to ongoing supply chain issues caused by the Russian invasion and other factors. Researcher Yang said, "The increase in raw material prices and exchange rate volatility are expected to be reflected in vehicle prices, increasing the burden on consumers," and added, "Meanwhile, the global inflation phenomenon raises concerns about a decline in the real purchasing power of some consumer groups."

He continued, "Even if the war ends, the possibility of automobile production delays due to economic sanctions against Russia and supply chain changes remains," and added, "The reduced purchasing power of consumers in some economic zones is expected to slow the global new car sales recovery."

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