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July 4, 2017

South Korean domestic sales fall 13% in June

Domestic sales by South Korea’s five main automakers declined by 13% to 139,842 units in June from 161,062 units in the same month of last year, according to preliminary data released individually by the vehicle manufacturers.

Domestic sales by South Korea’s five main automakers declined by 13% to 139,842 units in June from 161,062 units in the same month of last year, according to preliminary data released individually by the vehicle manufacturers.

The data did not include sales by South Korea’s low volume commercial vehicle manufacturers, including Tata-Daewoo and Daewoo Bus Corporation, which typically account for up to 2% of the domestic market.

Also not included in the data are sales of imported vehicles which exceeded 12% of the total vehicle market last year. These are covered in a separate report later in the month.

The market decline continued to steepen in June, from declines of 7% in May and 5% in April, reflecting peak volumes a year earlier incentivised by sales tax discounts which have since been discontinued. 

Only Ssangyong reported an increase in domestic sales in June, of just over 8%, while all other domestic manufacturers suffered double digit declines. In the first half of the year, domestic sales were lower by 4.0% at 779,685 units compared with 812,266 units in the same period of last year.

Global sales, including vehicles produced overseas by Hyundai-Kia, continued to decline sharply in June, by more than 14% to 691,683 from already weak year earlier sales of 805,495 units, reflecting lower domestic and overseas sales.

Global sales in the first six months of the year were 8% lower at 4,009,604 units compared with 4,357,851 units in the same period a year earlier.

Overseas sales, including vehicles produced overseas by Hyundai-Kia, dropped by 14% to 551,841 units last month from already weak 644,433 sales a year earlier. This reflects sharply lower sales in China, with the recent deployment of the US missile shield causing a political fallout between the two countries, and also by lower demand in key markets such as the US.

In the first six months of the year, overseas sales were 8.9% lower at 3,229,917 units, from 3,545,585 units previously. 

Hyundai Motor‘s global sales fell by over 15% to 376,109 units in June, from 445,021 units a year earlier, reflecting sharply lower domestic and overseas sales. In the first six months of the year, the brand’s global sales fell by 8.2% to 2,198,225 units from 2,394,099 units a year earlier, reflecting sharply lower sales in China and the USA.

Domestic sales fell by 11.6% to 61,837 units in June from 69,970 units a year earlier, despite the recent launched of the Grandeur, Sonata and Creta models. Cumulative six month domestic sales were 1.8% lower at 344,783 units compared with 351,124 units a year earlier.

Hyundai’s overseas sales fell sharply last month, by over 16% to 314,272 units from 375,051 units a year earlier, reflecting mainly a sharp decline in sales in China and also weaker volumes in the US despite the recent roll out of its Genesis premium brand in this market. In the first six months of the year, the company’s overseas were 9.3% lower at 1,853,442 units, from 2,042,682 units previously.

Hyundai said it had stepped up new model programmes in key overseas markets to help reverse this decline, including the models tailored specifically for individual markets. Last month it launched the Kona small SUV which is expected to be a big seller at home and in Europe. 

Kia Motors‘ global sales fell by 13.3% to 232,370 units in June, from 267,976 units a year earlier, reflecting weak domestic and overseas demand. Sales in the first six months of the year were 9.4% lower at 1,320,585 units from 1,457,599 a year earlier. 

Domestic sales fell by 10.5% to 47,015 units last month from 52,506 units a year earlier, resulting in a 7.6% fall in year to date sales to 255,843 units from 276,750 units previously. The company hopes new models, including the Stinger sporty sedan launched in May and the forthcoming new Stonic small SUV, will help reverse the recent decline.

Overseas sales fell by 14% to 185,355 in June from 215,470 units a year earlier, mainly reflecting sharply lower sales in China and also a decline in the US. Cumulative six-month overseas sales were 9.9% lower at 1,064,823 units compared with 1,180,849 units in the same period last year.

GM Korea’s global sales fell by close to 21% to 43,692 units in June, from 55,077 units a year earlier following sharp declines in both domestic and overseas sales. In the first six months of the year CBU sales were 9.3% lower at 278,998 units compared with 307,512 units a year earlier.

The data did not include exports of CKD kits for assembly overseas, which are substantial.

Domestic sales fell by a massive 37% to 11,455 units last month from 18,058 units a year earlier, reflecting sharply lower demand for the Impala, Malibu and Alpheon passenger cars. Year to date sales fell by 16.2% to 72,708 units from 86,779 units previously.

CBU exports fell by almost 15% to 32,237 units in June, from 37,019 units a year earlier, and by 6.5% to 206,290 year to date from 220,733 units previously.

Renault-Samsung’s global sales rose by over 15% to 26,815 vehicles in June, from 23,254 units a year earlier, reflecting a sharp jump in overseas sales. In the first half of the year global sales, excluding CKD exports, were up by 9.7% at 135,895 units compared with 123,930 a year earlier.

Domestic sales fell by over 16% to 9,000 units last month from 10,778 units a year earlier, while year to date sales were still up by over 12.8% at 52,900 units from 46,917 units previously.

CBU exports jumped by almost 43% to 17,815 in June from 13,109 units a year earlier, after a sharp decline in the previous month, with shipments of the SM6 flagship sedan model rebounding strongly. In the first half of the year outbound shipments were 6.9% higher at 83,013 units from 77,644 units previously.

Ssangyong Motor, owned by India’s Mahindra & Mahindra, reported a more than 10% drop in sales of CBU (assembled vehicles) to 12,697 units in June compared with 14,167 units a year earlier, on sharply lower export sales.

Global sales in the first six months of the year were 5.7% lower at 70,345 units, compared with 74,577 units previously. 

Domestic sales increased by 8.1% to 10,535 units in June, from 9,750 units a year earlier, and were 5.5% higher at 53,469 units in the first six months of the year from 50,696 units previously. 

CBU exports plunged by over 51% to 2,162 units last month, from 4,417 units a year earlier, and by over 29% to 16,876 units year-to-date from 23,881 units previously.

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