Have Domestic Automakers Caught a Break from the Parts Shortage? Sales Up 10%...

Five Completed Vehicle Manufacturers Sell 626,000 Units
10% Increase Compared to Previous Year

Last month, the domestic and overseas sales volume of five major domestic automakers increased by double digits. Last year, production and sales were disrupted due to supply chain issues caused by the resurgence of COVID-19, but the situation has improved significantly this year.

According to the February sales data announced on the 2nd by Hyundai Motor and other companies, the total domestic and overseas sales volume of the five companies was recorded at 625,517 units. This is a 10.1% increase compared to February last year (568,249 units). The upward trend continued from January this year through last month.

Hyundai Motor Company Ulsan Plant Export Shipping Wharf Adjacent Yard

By company, all except Renault Korea Motors saw an increase in sales compared to the previous year. Hyundai Motor sold 327,718 units, up 7.3%, and Kia sold 254,027 units, up 14.7%. Korea GM increased sales by 14.6% during the same period, and Ssangyong Motor increased sales by 47.3%. On the other hand, Renault Korea’s sales plummeted by about 40% both domestically and overseas, selling just over 7,000 units in total.

Domestically, the concentration of sales in Hyundai Motor and Kia intensified. Hyundai Motor and Kia’s domestic sales increased by more than 20% last month, while the other companies’ sales actually declined. Korea GM’s domestic sales last month shrank to 1,117 units, less than half of the previous volume. Ssangyong Motor’s domestic sales nearly doubled, but this was due to the new model (Torres) that was not available at this time last year.

Export volumes generally increased. Hyundai Motor’s overseas sales rose by 4.1%, and Kia’s by 12.0%. Korea GM also saw export volumes increase by more than 20% thanks to the launch last month of the compact SUV (Chevrolet Trax Crossover). The company reported that shipments to North America alone exceeded 6,000 units last month.

Although the supply of parts such as automotive semiconductors is gradually normalizing, negative factors such as a shortage of ships to transport export vehicles have not completely disappeared. The increase in consumer burden due to rising inflation pressures and interest rate hikes in major markets, including domestically, also dampens automobile sales. The waiting period for new cars, which used to be as long as two years and six months, has recently shortened significantly. This reflects an environment where consumers are reluctant to purchase new cars due to increased interest burdens and reduced purchasing power.

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