Domestic Sales Report of Korean Cars Divided by New Car Models

Domestic Sales of 102,719 Units Last Month... 2.3% Increase YoY
Kia and Korea GM Only Show Domestic Sales Growth
Domestic and Overseas Sales Reach 610,000 Units... 5.5% Increase YoY

Domestic finished car manufacturers recorded a total of 102,719 units sold in the domestic market last month. Compared to the same period last year, this represents a 2.3% increase, alleviating concerns about a 'sales cliff.' However, a closer look reveals that even the largest manufacturer, Hyundai Motor Company, experienced a decline in sales, reinforcing expectations that the domestic market will face challenges throughout the year.

According to the sales performance announced on the 1st by five domestic finished car manufacturers, Hyundai Motor sold 49,810 units last month, a 3.3% decrease compared to the same period last year. Sales of the Sonata and Ioniq 6 dropped by more than 80% during the same period. This decline is attributed to reduced production as the Asan plant, which mainly produces sedans, began construction for electric vehicle production facilities.

Cars are waiting to be shipped at Pyeongtaek Port, viewed from the air. [Aerial shooting cooperation = Seoul Metropolitan Police Agency Aviation Unit, Pilots: Lieutenant Shin Seung-ho - Lieutenant Park Ji-hwan, Crew: Lieutenant Park Sang-jin] Photo by Kang Jin-hyung aymsdream@

KG Mobility sold 3,762 units over the month, a 47.2% decrease compared to the same period last year. Renault Korea Motors sold 1,645 units, down 22.3% from the same period last year. KG Mobility explained that "sales declined due to the seasonal off-season and continued consumer sentiment contraction, as electric vehicle subsidies have not been finalized." However, they noted "a 7.2% increase compared to the previous month (December last year), showing some signs of recovery."

Renault Korea experienced a decline in sales across all domestic models (SM6, QM6, XM3). Despite various promotions, the decrease is attributed to model aging without the introduction of new vehicles.

On the other hand, Kia and Korea GM saw increases in domestic sales. Kia sold 44,608 units last month, and Korea GM sold 2,984 units, representing increases of 15.3% and 183.4%, respectively, compared to January last year. Kia's sedan sales were similar to January last year, but sales of leisure vehicles (RVs) such as the Sorento and Seltos increased by nearly 28%, driving overall performance. Korea GM's domestic sales rose due to the Trax crossover, which was not available at the beginning of last year, selling 2,246 units.

A red light is on at the traffic signal in front of the Hyundai-Kia Motors headquarters in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

January is typically considered an off-season for finished car sales. Promotional activities by manufacturers, which were vigorous in December, decrease, and electric vehicle sales slow down due to the lack of finalized eco-friendly vehicle purchase subsidies. Under these circumstances, since the second half of last year, there have been forecasts that the new car sales market will shrink this year as pent-up demand has been resolved. Hyundai Motor and Kia have slightly raised their overseas sales targets for this year while lowering their domestic sales targets.

Until early last year, popular models had waiting periods exceeding two years due to high latent demand. This year, such waiting demand has significantly decreased. Production difficulties caused by parts supply shortages have been fully resolved. Hyundai Motor informs customers that hybrid models of some vehicles like the Santa Fe have waiting periods of about 8 to 12 months, but most models can be delivered within 2 to 3 months. Some models even have inventory vehicles available for immediate delivery after ordering.

A detailed look at last month's sales performance shows mixed results depending on new models. The Kia Sorento, launched as a new model in August last year, became the best-selling domestic model with 9,284 units sold. The second and third best-sellers, the Santa Fe and Kia Carnival, are also facelifted models released in the second half of last year. The EV9 was sold in unusually high numbers due to large-scale promotions.

Meanwhile, the total domestic and overseas sales volume of the five domestic finished car manufacturers last month was 614,732 units, a 5.5% increase compared to January last year. Hyundai Motor, Kia, and Korea GM increased by 1.8%, 4.2%, and 165.8%, respectively. KG Mobility and Renault Korea decreased by 16.6% and 81.4%, respectively. Renault Korea's exports to Europe, which constitute a large portion of its sales, sharply declined due to logistics disruptions caused by rebel activities near the Red Sea.

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