Domestic vehicle sales by South Korea’s five main automakers combined rose by 4% to 118,812 units in December 2024 from 114,290 year earlier, according to preliminary data released individually by the manufacturers. The data does not include sales by South Korea’s low-volume commercial vehicle manufacturers such as Tata-Daewoo and Edison Motors, while import brands are covered in a separate Just Auto report later in the month.
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The market last month was underpinned by recent new model launches and year-end promotions as manufacturers and dealers looked to meet their full-year targets. Overall domestic demand remains sluggish, however, with high levels of household debt holding back domestic economic growth. The central bank cut its benchmark interest rate by 25 basis points for the second consecutive month in November, to 3.0%, to help drive up private consumption.
Over the full year domestic vehicle sales fell by almost 7% to 1,362,792 units from 1,458,241 units a year earlier, with most major brands reporting declines. Hyundai Motor reported a 7.5% drop in domestic deliveries 75,010 units in 2024, while Kia’s sales were 4.2% lower to 540,010 units. GM Korea reported the sharpest drop, of 36% to 24,824 units, followed by KG Mobility with a 26% fall 26% to 47,046 units. Renault Korea was the only company to report a sales increase last year, of 61% to 39,816 units, helped by the recent launch of the new Grand Koleos SUV.
Global sales by the country’s “big-five” automakers, including vehicles produced overseas by Hyundai and Kia, fell slightly to 7,947,170 units last year from 7,995,379 in 2023, supported by a slight increase in overseas sales to 6,584,378 from 6,537,452 units.
Hyundai Motor’s global sales fell by almost 4% to 330,059 units in December from 343,174 a year earlier, resulting in a 1.8% decline in full-year sales to 4,141,791 units from 4,216,898 in 2023, reflecting particularly weak domestic demand and also a slight decline in overseas sales.
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By GlobalDataDomestic sales dropped by 1.4% to 61,323 units in December from 62,172 a year earlier, following much sharper declines in previous months. Over the full year, the company’s domestic sales declined by 7.5% to 705,010 units from 762,077 in 2023.
Hyundai’s overseas sales fell by 4.4% to 268,736 units last month from 281,002 a year earlier, while full-year volumes were just slightly lower at 3,436,781 units from 3,454,821 units, underpinned by strong demand in North America and in India. The company’s new EV plant in the US state of Georgia became partially operational in October, producing the Ioniq 5, with output expected to be ramped up in 2025 with the introduction of new Hyundai and Kia models including the Ioniq 9.
Hyundai has set a global sales target of 4,174,000 vehicles for 2025, including its Genesis luxury brand, representing just a slight increase over 2024 volumes. This includes 710,000 domestic sales and 3,464,000 overseas sales. To achieve this goal, the company said it will focus “on strengthening its market competitiveness with a stronger range of electrified models, including hybrids and battery electric vehicles, and scaling up local production at its global manufacturing facilities.”
Hyundai plans to continue to strengthen its battery electric vehicle (BEV) line-up, reflecting the recent launch of the A-segment Casper Electric, with the global roll-out of the Ioniq 3, Ioniq 7 and Ioniq 9 in 2025. The company is also preparing to launch production of a hybrid version of the Palisade this month, while the Initium – a second-generation model of the hydrogen fuel cell electric vehicle Nexo – is scheduled to go into production in the second half of the year.
Last year Hyundai cut its medium-term global sales forecast, by 6% to 5.5 million vehicles for 2030, to reflect the slower than expected growth in the global BEV segment and rising competition from Chinese automakers. The company confirmed it will continue to “improve its regional product mix, optimize production and enhance its product mix with more SUVs and luxury models.”
Kia’s global sales surged by 12% to 240,537 vehicles in December from 215,156 a year earlier, reflecting strong growth in overseas sales and a moderate increase in domestic deliveries. The brand’s global sales last year were just slightly higher at 3,089,457 compared with 3,087,384 in 2023, falling short of the company’s target of 3.2 million sales.
Kia’s best-selling model last year was the Sportage SUV with 587,717 global deliveries, followed by the Seltos with 312,246 units and the Sorento with 280,705 units – all of which are SUVs. The brand’s overall sales last year were supported by the introduction of new models such as hybrid versions of the Carnival and Sportage models, the new K4 sedan and the EV3 BEV.
Domestic sales, excluding special purpose vehicles (SPVs), increased by 2.8% to 46,070 units last month from 44,803 a year earlier, while full-year volumes were 4.2% lower at 540,010 from 563,660 in 2023. The company reported a further 6,086 SPV deliveries last year, including military and municipal trucks, most of which were sold locally. Overseas sales jumped by over 14% to 193,887 units in December from 169,758 a year earlier, resulting in a 1% increase in full-year sales to 2,543,361 from 2,518,016 units.
Kia is targeting a 4% increase in global sales to 3,216,200 units in 2025, including 550,000 domestic sales, 2,658,000 overseas sales and 8,200 SPV sales, supported by the recent launch of the new K4 and revamped K5 sedans. This year the company will begin to roll out its new Tasman pickup truck, followed by the EV4 and EV5 BEVs later in the year. The company’s medium-term plan is to sell 4.3 million vehicles annually by 2030, including 1.6 million BEVs.
GM Korea’sglobal sales increased by almost 4% to 53,325 vehicles in December from 51,367 a year earlier, resulting in a 7% rise in full-year sales to 499,559 units from 468,059 in 2023 – reflecting particularly strong growth in the first half of the year. Sales in the third quarter were affected by a series of partial strikes, before full production resumed in October.
Local deliveries continued to fall sharply last month, by 19% to 1,801 units from 2,214 units a year earlier, resulting in a 36% drop in full year sales to 24,824 units from 38,755 units – reflecting strong competition from Hyundai-Kia and from imports. GM Korea produces two main models, the Trax Crossover and the Trailblazer SUV, and imports the Colorado pickup truck, Equinox, Traverse and Tahoe SUVs, as well as the GMC Denali pickup truck.
Exports increased by 5% to 51,524 units in December from 49,153 a year earlier and were up by 11% to 474,735 over the full year from 429,304 in 2023.
KG Mobility (KGM) reported a 62% rebound in global sales to 10,687 vehicles in December from weak year-earlier sales of 6,608 units, reflecting sharply higher overseas sales. Total volumes last year declined by 6% to 109,424 units from 116,099 units in 2023, however. The company, previously known as Ssangyong Motor, was acquired in late 2022 by a consortium led by local steel and chemicals firm KG Group.
Domestic sales plunged by 28% to 2,540 vehicles last month from 3,507 units a year earlier, despite the recent launch of the new Actyon SUV and a new minivan version of the Torres EVX SUV. Full year domestic deliveries were down by 26% to 47,046 from 63,345 units in 2023, reflecting weak overall domestic demand and strong competition from other domestic manufacturers and importers.
Exports surged almost threefold to 8,147 units in December from a depressed 3,101 units a year earlier, helped by the launch of new models and entry into new markets. Over the full year exports increased by 18% to 62,378 units from 53,083 in 2023.
KGM recently announced it had signed a strategic partnership with China’s Chery Automobile Company, involving platform licensing and product sharing aimed at helping it strengthen its SUV line-up. The deal will also give KGM access to readily available new energy vehicle (NEV) technologies including vehicle platforms.
Renault Korea‘s global sales more than doubled to 14,647 vehicles in December from depressed year-earlier sales of 6,807 units, reflecting a strong rebound in both domestic and overseas sales. Total deliveries last year increased by 3% to 106,939 units from 106,924 units in 2023.
Domestic sales surged fourfold to 7,078 vehicles last month from 1,594 units a year earlier, following the recent launch of the new Geely-based Grand Koleos hybrid SUV, while full-year sales increased by 61% to 39,816 from 24,696 units.
Exports increased by 45% to 7,569 units in December from 5,213 units a year earlier, most of which comprised shipments of the Arkana hybrid crossover vehicle (a rebadged XM3), while over the full year exports were still down by 18% to 67,123 from 82,228 units.
Renault Korea last year confirmed it will continue to overhaul its product range with a strong focus on SUVs, BEVs and hybrid vehicles, starting with the launch of the new Geely-based Grand Koleos hybrid SUV last July and the phasing out of its aging SM6 mid-size sedan. The company recently agreed to produce the Geely Polestar 4 BEV at its Busan plant from the second half of 2025, for sale domestically and for export.
Hyundai – future models 2025-2035
