Domestic sales by South Korea’s five main automakers fell by 5% to 132,675 units in April 2017, from 139,617 units in the same month of last year, according to preliminary data released individually by the country’s 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.
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Also not included in the data was sales of imported vehicles, which exceeded 12% of the total vehicle market last year. These will be covered in a separate report after the data is released later in the month.
The market decline increased in April, after falling 2% in March, but this reflects more than anything strong year-earlier sales incentivised by now-discontinued sales tax discounts.
Domestic sales in the first four months of the year were just slightly lower at 504,400 units, compared with 505,389 units a year earlier. The performances of the individual vehicle manufacturers was mixed last month, with Hyundai and Renault-Samsung posting moderate increases, while Kia, GM and Ssangyong reported sharp declines.
Global sales among the country’s ‘big-five’ automakers, including vehicles produced overseas by Hyundai-Kia, continued to decline sharply in April, by 11.3% to 656,735 units from already weak year earlier sales of 740,036 units, reflecting both weaker domestic and overseas sales.
Global sales in the first four months of the year were 4.9% lower at 2,654,873 units compared with 2,791,123 units in the same period a year earlier.
Overseas sales, including vehicles produced overseas by Hyundai-Kia, fell by 12.7% to 524,060 units last month from already weak 600,419 sales a year earlier.
In the first four months of the year, overseas sales were 5.9% lower at 2,150,471 units, from 2,285,734 units previously, reflecting lower deliveries in key markets such as the US, China and Russia.
Hyundai Motor‘s global sales fell by close to 12% to 364,225 units in April, from 412,588 units a year earlier, on sharply lower overseas sales. Global sales fell by 4.3% to 1,454,147 units in the first four months of the year, from 1,519,994 units a year earlier, with local analysts pointing to a limited SUV line and political tensions between South Korea and China as key factors for this recent weakness.
Domestic sales continued to expand in April, albeit by just 1.5% to 60,361 units from 59,465 units a year earlier, helped by the recent launch of the Grandeur and Sonata passenger cars and the newly launched Creta crossover SUV. Cumulative four month sales were slightly higher at 222,339 units, compared with 220,327 units a year earlier.
Overseas sales fell sharply last month, by 13.9% to 303,864 units from 353,123 units a year earlier, reflecting mainly a sharp decline in sales in China. Overseas sales in the first four months of the year were 5.2% lower at 1,231,808 units, from 1,299,374 units previously.
The company has stepped up its new model launch programmes in key overseas markets to help reverse this decline, including the forthcoming new Kona compact SUV in the US.
Kia Motors‘ global sales fell by over 13% to 209,832 units in April, from 241,617 units a year earlier, reflecting both weak domestic and overseas sales. Sales in the first four months of the year were 7.7% lower at 874,696 units compared with 948,063 units in the same period of last year.
Domestic sales fell by 10.3% to 43,515 units last month from 48,505 units a year earlier, resulting in a 6.4% fall in year to date sales to 165,306 units, from 176,630 units previously. The company hopes that new model launches in the coming months, including the new Stinger passenger car in May and the G70 luxury saloon in July, will help reverse the recent decline.
Overseas sales fell by almost 13% to 166,317 units in April, from 193,112 units a year earlier, reflecting mainly sharply lower sales in China. Cumulative four-month overseas sales declined by 8.6% to 703,862 units from 770,146 units last year.
GM Korea‘s global sales fell by 2.8% to 49,163 units in April, from 50,580 units a year earlier, reflecting a sharp decline in domestic sales. In the first four months of the year CBU sales were 4.1% lower at 192,221 units compared with 200,528 units a year earlier.
The data did not include GM’s exports of CKD units for assembly overseas, which are substantial.
Domestic sales fell by almost 16% to 11,751 units last month, from 13,978 a year earlier, reflecting sharply weaker sales of the Impala passenger car and SUVs. Year to date sales fell by 4.2% to 49,399 units, from 51,542 units previously.
CBU exports fell by 8.2% to 37,412 units in April, from 36,602 units a year earlier, and by 4.1% to 142,822 year to date from 148,986 units.
Renault-Samsung‘s global sales rose by 4.3% to 22,444 units in April, compared with 21,981 units a year earlier, reflecting stronger domestic and export sales. In the first four months of the year global sales, excluding CKD exports, rose by close to 16% to 88,563 units compared with 76,564 units previously.
Domestic sales were 1.9% higher at 8,720 units last month, from 8,536 units a year earlier, helped by the QM3 compact SUV and strong sales of the SM6 mid size sedan and the QM6 models. Year to date sales rose by almost 38% to 34,678 units compared with 25,135 in the same period of last year.
CBU exports rose by 2.2% to 13,742 units in April from 13,445 a year earlier, resulting in a 4.8% rise in outbound shipments to 53,903 units in the first four months of the year from 51,429 units previously.
Ssangyong Motor, owned by India’s Mahindra & Mahindra, reported an 18% drop in sales of built-up vehicles to 11,071 units in April – compared with 13,462 units a year earlier – on sharply lower domestic and exports sales.
Sales in the first four months of the year were 3.9% lower at 45,299 units, compared with 47,128 units a year earlier.
Domestic sales fell by 8.9% to 8,346 units in April but were 3% higher at 32,696 units in the first four months of the year, from 31,755 units previously. CBU exports fell by 37% to 2,725 units last month and by 18% to 12,603 units year to date, from 15,373 units in the same period last year.
