Domestic sales by South Korea’s five largest automakers declined by 3.3% to 134,895 units in October from 139,557 units in the same month of last year, according to preliminary data released individually by the companies.
The data did not include sales by South Korea’s low-volume commercial vehicle manufacturers, including Tata-Daewoo and Daewoo Bus Corporation, as well as sales of imported vehicles which are covered in a separate report when the data are released later in the month. Together these accounted for close to 15% of total vehicle sales in the country last year.
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Economic growth in South Korea slowed sharply this year, to below 2% in the January-September period, reflecting deteriorating domestic sentiment and weak exports. The trade war between the US and China continued to intensify while relations with neighbouring Japan also remain strained. Bank of Korea cut its benchmark interest rate by 25 basis points on two occasions since July to 1.25% to help shore up consumer spending, while new vehicle models launched recently by Hyundai and Kia are now struggling to lift the overall market.
Kia was the only domestic brand to report a sales increase last month, of 2.3% to 47,143 units, helped by the launch of new models such as the Seltos compact MPV and the facelifted Mohave. Hyundai’s domestic sales fell by 2.1% to 64,912 units; Renault Samsung 8,401 units (-4.7%); Ssangyong 8,045 units (-20%); and GM Korea 6,394 units (-23%).
Overall domestic sales in the first 10 months of the year were 1.2% lower at 1,251,953 units from 1,266,998 in the same period of 2018.
Global sales among the country’s ‘big five’ automakers, including vehicles produced overseas by Hyundai and Kia, fell by 3.9% to 703,837 units in October from 733,536 units a year earlier, reflecting weaker domestic and overseas sales. Total volume in the first 10 months of the year was 3.8% lower at 6.52m units from 6.78m in the same period of last year.
Overseas sales, including exports and vehicles produced overseas by Hyundai and Kia, fell by 4.2% to 568,942 units in October from 593,979 units a year earlier, reflecting continued weak demand in key developing markets including China, India and Russia. In the first 10 months of the year volumes were 4.5% lower at 4,782, 899 units from 5,007,888 units previously.
Hyundai Motor‘s global vehicle sales fell by 2.5% to 399,906 units in October from 410,325 units a year earlier, reflecting weaker domestic and overseas sales. The brand’s overall sales in the first 10 months of the year were down by 3.8% at 3,629,577 units from 3,773,081 units in the same period last year.
Domestic sales declined by 2.1% to 64,912 units last month from 66,288 a year earlier, despite the recent launch of new SUVs such as the Palisade, Santa Fe, Kona and Venue, as well as the redesigned Sonata passenger car. Sales in the first 10 months of the year were still 3.4% higher at 612,347 units from 592,112 units previously.
Overseas sales fell by 2.6% to 334,994 units in October from 344,037 units a year earlier and were down by 5.1% at 3,018,691 units year to date from 3,180,969 units previously – reflecting mainly declining sales in developing markets such as China, India and Russia.
Sales in the US have begun to recover following the launch of the Palisade in June while the global roll out of new SUV models such as the Kona and Venue are also helping to lift overseas demand.
Kia Motors‘ global sales fell by 0.8% to 248,752 vehicles in October from 250,680 units a year earlier, reflecting weaker overseas sales. In the first 10 months of the year the brand’s global sales were down by 1.4% at 2,292,532 units from 2,324,059 units previously.
Domestic sales remained positive last month, by 2.3% to 47,143 units from 46,100 units a year earlier, helped by strong demand for new SUVs such as the facelifted Mohave and the new Seltos. Year to date domestic sales were still lower by 4.2% at 422,460 units from 440,840 units a year earlier.
Overseas sales declined by 1.5% to 201,609 units in October from 204,580 units a year earlier, despite a sales rebound in the US after a sharp drop in the previous month. Overseas sales were 0.9% lower at 1,866,946 units year to date from 1,883,259 units previously, reflecting mainly continued weak demand in China which has more than offset higher sales in the US and Europe. The company has stepped up its new model launches this year with new SUVs such as the redesigned Soul, the Telluride and Seltos currently being rolled out globally.
GM Korea‘s global sales plunged by over 25% to 30,158 units in October from 40,477 units a year earlier, with both domestic and export sales declining sharply. Global sales in the first 10 months of the year were more than 11% lower at 339,091 units from 381,826 units in the same period of last year.
Domestic sales dropped by almost 23% to 6,394 units in October from 8,273 a year earlier and were down by close to 19% at 60,328 units year to date from 74,395 units previously. Exports plunged by almost 26% to 23,764 units last month from 32,204 units and by 9.3% to 278,763 units year to date from 307,231 units, despite reasonably strong demand for the locally made Trax and the imported Equinox SUV.
The company launched the US made Colorado pickup truck in South Korea in August, with deliveries starting in October, and the imported Transverse SUV in September – helping to strengthen its domestic line-up in a market dominated by Hyundai and Kia. The company also plans to begin local production of the Trailblazer SUV by the end of the year.
Renault-Samsung, which is 80%-owned by Renault, saw its global sales drop sharply in October – by over 20% to 14,826 units from 18,630 units a year earlier – reflecting mainly a sharp drop in exports. Overall sales in the first 10 months of the year were more than 24% lower at 144,736 units from 190,525 units in the same period of last year.
Domestic sales fell by 4.7% to 8,401 units in October from 8,814 units a year earlier and were almost 6% lower at 68,803 units in the first 10 months of the year compared with 73,157 units previously. Exports plunged by over 35% to 6,425 units last month from 9,816 units a year earlier and by close to 39% to 74,280 units year to date from 117,371 units – reflecting a sharp drop in export orders from Nissan for the Rogue SUV.
The Rogue contract has not been discontinued, forcing Renault-Samsung to look for new models to fill the void. The company began producing the Twizy small electric vehicle last month with an annual domestic sales target of between 5,000-15,000 units, with the model also being shipped to Europe.
Renault Samsung said it aimed to lift domestic sales to over 100,000 units in 2020 with the launch of three new and three upgraded models during the year. This includes the XM3 compact SUV to be launched in the first quarter, followed by the second-generation QM3 SUV and the redesigned Zoe battery electric vehicle in the second quarter of the year. The models to be revised include the SM6 sedan, QM6 SUV and Master van.
Ssangyong Motor, majority-owned by Mahindra & Mahindra, reported a drop in global sales of close to 24% to 10,195 vehicles in October from 13,352 units a year earlier, reflecting weaker domestic and export demand. In the first 10 months of the year the brand’s sales were down by almost 5% at 109,122 from 114,788 units previously – on weaker sales of the Tivoli and G4 Rexton SUVs.
Domestic sales declined by over 20% to 8,045 units last month from 10,082 a year ago and were just slightly lower at 88,015 units year to date from 88,154 units previously. Exports plunged by 36% to 2,150 units last month from 3,342 units and were down by over 14% at 23,583 units year to date from 27,516 units.
