Five Domestic Carmakers Accelerate with New Models in H1... Kia Sets New Record in 61 Years (Comprehensive)

by Woo Sooyoun

Published 03 Jul.2023 17:12(KST)

Global Sales of 5 Domestic Car Manufacturers in the First Half of This Year
Domestic and Export Sales Both Increase... Double-Digit Growth in Domestic and Overseas Sales
Kia Achieves Record High Performance for First Half
KG Mobility Leads Domestic Market with Torres
Korea GM Expands Exports Driven by Two 'Hero Models'

In the first half of this year, five domestic automakers in South Korea showed double-digit global sales growth, buoyed by the effect of new car launches. They have completely overcome the semiconductor and parts supply issues that shadowed the market in the first half of last year, and this year, sales momentum is gaining strength.

In particular, Kia achieved global sales of over 1.57 million units in the first half of this year alone, setting a new all-time record. This first-half sales volume is the highest in 61 years since Kia entered the automobile sales business in 1962.

On the 3rd, the five domestic automakers (Hyundai Motor Company, Kia, Korea GM, KG Mobility, and Renault Korea) sold 4,001,680 units globally in the first half of this year, a 12.9% increase compared to the previous year. In the domestic market, the five companies sold 758,876 units, up 13.6% year-on-year, while overseas sales increased by 12.7% to 3,240,054 units.

New Kia Carnival
Photo by Kia

In the domestic market in the first half of this year, four of the five companies, excluding Renault Korea, recorded year-on-year sales growth. Hyundai Motor Company’s domestic sales in the first half approached 400,000 units, driven by the new car effect from recently launched models such as the Grandeur and Kona. Grandeur sales increased by 87% year-on-year to 62,970 units, and Kona sales more than quadrupled to 18,612 units compared to 4,451 units in the first half of last year.

Kia, which recorded its best-ever performance in the first half of this year, sold 292,103 units (excluding special vehicles) in the domestic market, an 11.5% increase year-on-year. The best-selling Kia model was the Carnival (39,350 units), followed by the Sorento (36,558 units) and the Sportage (36,084 units).

Among the three mid-sized companies, KG Mobility’s progress stood out. KG Mobility’s mid-size sport utility vehicle (SUV), the Torres, led strong sales with over 25,000 units sold in the first half. KG Mobility sold 38,969 units in the domestic market in the first half, a 38% increase, with 66% of those being Torres models.

KG Mobility Torres [Photo by KG Mobility]

Meanwhile, in the overseas market, the five domestic automakers recorded sales of 3,240,054 units, up 12.7% year-on-year. Exports increased for all five companies compared to the previous year. Hyundai Motor Company and Kia both recorded sales growth of around 10% year-on-year. Kia set new first-half sales records in the United States, Europe, and India. The best-selling Kia model overseas was the Sportage, with 224,401 units sold.

Among the three mid-sized companies, Korea GM’s export performance was remarkable. Korea GM exported 195,322 units in the first half of this year, an 85.7% increase year-on-year. The Trailblazer and Trax crossovers, which are export star models, drove the expansion of overseas sales. Both models were developed at GM Korea’s business site and introduced to overseas markets. It is evaluated that applying convenience features tailored to the discerning Korean consumer’s standards attracted positive responses from global consumers.

Renault Korea is also gradually recovering its export performance from the first half of this year. Renault Korea’s main export model, the Renault XM3 (export name Arkana), recorded cumulative exports of 199,552 units through June this year, nearing the milestone of 200,000 units exported. To resolve issues such as the shortage of dedicated car carriers and the sharp increase in maritime freight rates since the second half of last year, Renault Korea has been exporting 10% of XM3 export volumes using container ships since May.