In the European New Car Market, Hyundai and Kia Falter... Latecomers Show Strong Momentum Increasing

[Asia Economy Reporter Choi Daeyeol] Hyundai Motor and Kia's sales volume in Europe last month decreased by about 3% compared to the same period a year earlier. While overall sales increased, their decline caused their market share to fall to the 8% range. Although they are likely to be among the top three for the year, the fierce counterattack from latecomers increasing production volume is expected to intensify competition from next year onward.

According to the new vehicle registration status for last month announced by the European Automobile Manufacturers Association on the 15th, the number of vehicles sold in Europe (EU+EFTA+UK combined) last month was recorded at 1,014,630 units. This is more than a 20% increase compared to the same period last year. Europe had faced several months of difficulties in factory operations due to parts supply shortages caused by COVID-19 and the Russian invasion, but since August this year, the upward trend compared to the previous year has continued. This marks four consecutive months of growth through last month.

Hyundai Motor's sales volume last month was 42,793 units, down about 7% from the same period, while Kia's sales increased by 2% to 40,898 units. Combined, the two brands saw a 3% decrease. Based on last month's sales volume, their market share was 8.2%, ranking fourth after Volkswagen (25.1%), Stellantis (16.3%), and Renault (9.5%).

Volkswagen ID.Buzz being produced at the Volkswagen Commercial Vehicles plant in Hanover, Germany

Based on cumulative sales from January to November this year, Hyundai Motor and Kia's market share is 9.7%, ranking third after Volkswagen (24.7%) and Stellantis (18.6%). This is 1 percentage point higher than the same period last year. Renault, which had lower sales in the first half of the year, ranks fourth with 9.3%. Given that the gap between Hyundai Motor Group and Renault Group exceeds 40,000 units based on sales from January to November, the rankings of the top automakers are expected to remain unchanged until the end of the year.

However, as mid-tier and lower-tier manufacturers who had difficulty increasing sales due to production disruptions gradually normalize factory operations, their sales are also increasing. Many automakers such as Toyota (35%), BMW Group (15%), Ford (49%), Nissan (17%), and Volvo (18%) have seen double-digit sales growth. In particular, since Japanese manufacturers have many product lines that directly compete with Hyundai Motor and Kia, fierce competition is expected from next year onward.

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