Has Domestic New Car Sales Hit Bottom... Slowdown Pauses (Comprehensive)

Five Automakers, 106,386 Domestic Sales in September
August Sales 106,482 Units Similar
Year-End Promotion Strengthening and New Car Launch May Boost Sales Rebound

Last month, domestic new car sales in South Korea remained at a level similar to that of August. There had been concerns that consumer sentiment might weaken due to the end of the individual consumption tax reduction in the second half of the year, but the slowdown paused. Attention is focused on whether sales will rebound as the year-end new car sales peak season approaches.

According to the combined sales results announced on the 4th by five domestic automakers, domestic sales totaled 106,386 units. Compared to August's 106,482 units sold, there is almost no difference. August and September each had vacation periods and holidays, resulting in only a one-day difference in business days.

On the 27th, cars are waiting to be shipped at Pyeongtaek Port as seen from the sky. [Aerial shooting cooperation = Seoul Metropolitan Police Agency Aviation Unit, Pilots: Inspector Shin Seung-ho - Inspector Park Ji-hwan, Crew: Inspector Park Sang-jin] Photo by Kang Jin-hyung aymsdream@

By company, Hyundai Motor saw sales decrease by about 3%, and Korea GM by about 20%. Kia's sales increased by about 5%, KG Mobility by 4%, and Renault Korea Motors by about 10%. In July, when 114,818 units were sold, there were concerns about domestic demand contraction due to a sharp drop in sales compared to the previous month.

As consumer sentiment weakened in the second half, automakers agreed that new car sales were challenging. With the end of the individual consumption tax reduction, consumer burden increased by about 1.5%. Although the trend of interest rate hikes has slowed, rates remain high compared to last year.

The industry analyzed that the number of consumers closing their wallets increased significantly as the waiting demand for new cars, which had sometimes exceeded a year, rapidly decreased. However, the actual decline was less than expected. Traditionally, summer is considered an off-season for new car sales, so despite the worsening business environment, automakers have 'held their ground.'

As the year-end approaches, domestic sales are expected to rebound. Typically, as the year changes and new model year vehicles are released, promotional events such as price discounts are intensified. Automakers plan to release new cars accordingly to boost sales.

Kia held a Photo Media Day on the 17th at Aston House, Walkerhill Hotel in Gwangjin-gu, Seoul, unveiling the improved model of the 4th generation Sorento, 'The New Sorento.' The Sorento's trim prices are ▲2.5 Gasoline Turbo from 35.06 million to 41.93 million KRW ▲2.2 Diesel from 36.79 million to 43.66 million KRW ▲1.6 Gasoline Turbo Hybrid 4WD from 41.61 million to 48.31 million KRW, and ▲Hybrid 2WD models are priced from 37.86 million to 44.55 million KRW after eco-friendly vehicle tax benefits. Photo by Kim Hyunmin kimhyun81@

Last month, the top two domestic sales models, Kia Sorento and Hyundai Grandeur, were both newly released models. Kia plans to launch improved versions of the mid-size sedan K5 and the multi-purpose vehicle Carnival. However, companies without suitable new models to release face deep concerns. As electric vehicle sales slow, the government has temporarily introduced a system that provides additional subsidies for discounted models, which is also expected to positively impact sales.

Meanwhile, total sales including overseas sales by the five automakers last month reached 673,705 units, about 2% higher than the same period last year. Kia's sales increased by 5%, and Korea GM's by about 50%. KG Mobility's sales decreased by 15%, and Renault Korea's by about 52%.

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