Domestic sales by South Korea’s five largest automakers combined continued to rebound in May 2020, by 9.3% to 146,130 units from 133,719 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 will be covered in a separate report when the data is released later in the month. Together these accounted for 14% of total vehicle sales in the country last year.
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The domestic vehicle market seemingly shrugged off the broader concerns regarding the global COVID-19 pandemic and continued to rebound strongly from a sharp decline earlier in the year when manufacturers were forced to close plants due to supply chain disruptions.
South Korea had managed the coronavirus outbreak better than most in Asia, with its quick implementation of track and trace systems, and this was reflecting in the quick return to near normal day to day activity in the country.
Kia Motors once again drove the market higher last month, with sales jumping by 19% to 51,181 units thanks to strong demand for SUV models such as the Sorento, Seltos and Sportage.
Hyundai reported a 4.5% sales rise to 70,810 units, helped by the recent launch of the generation Avante compact passenger car, while Renault-Samsung’s sales continued to rebound strongly – by over 72% to 10,571 units – following the launch of a number of new models since the beginning of the year.
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By GlobalDataGM Korea’s domestic sales fell by 11% to 5,993 units last month, despite the launch of the locally made Traiblazer SUV in January, while Ssangyong’s sales plunged by 25% to 7,575 units as the company continued to struggle with liquidity issues.
In the first five months of 2020, domestic sales by the big five automakers were only marginally lower at 623,670 units from 628,052 units in the same period of last year.
Global sales by the big five automakers, including vehicles produced overseas by Hyundai and Kia, continued to fall sharply in May, by over 36% to 423,416 units from 665,136 units a year earlier, reflecting plunging overseas sales.
Global sales in the first five months of the year were down by more than 22% at 2,471,186 vehicles from 3,187,474 a year earlier.
Overseas sales, including exports and vehicles produced overseas by Hyundai and Kia, plunged by almost 48% to 277,286 units last month from 531,417 units a year earlier, reflecting economic lockdowns and temporary plant closures in key regional markets including North America, Europe, India and Latin America.
Overseas sales in the first four months of the year were down by over 28% at 1,832,858 units from 2,559,422 units in the same period of last year.
Hyundai Motor‘s global vehicle sales plunged by over 39% to 217,510 units in May from 358,567 units a year earlier, reflecting sharply lower overseas sales. In the first five months of the year global sales were down by over 26% at 1,288,629 units from 1,748,911 units previously.
Hyundai’s domestic sales rose 4.5% to 70,810 units last month from 67,756 units a year earlier, with deliveries beginning to recover from the extensive plant shutdowns and supply chain disruption that took place earlier in the year. Sales were also underpinned by new model launches, including the recently launched new-generation Avante compact passenger car, the upgraded Sonata and the new Genesis-branded G80. Domestic sales in the first five months of the year were down by just under 7% at 300,913 units from 323,126 units.
Overseas sales plunged by over 50% to 146,700 in May from 290,811 units a year earlier, reflecting ongoing economic lockdowns and temporary plant closures in key regional markets including North America, Europe, India and Latin America.
In the first five months of the year, overseas sales were down by almost 31% at 987,716 units from 1,425,785 units previously.
Kia Motors‘ global sales fell by close to 33% to 160,913 vehicles in May from 238,943 units a year earlier, reflecting a sharp decline in overseas sales.
Total sales in the first five months of the year were down by almost 15% at 949,860 units from 1,116,782 units a year earlier.
Domestic sales increased by 19% to 51,181 units last month from 43,000 a year earlier, as sales continued to rebound from earlier production shutdowns due to supply chain disruption and measures to help prevent the spread of COVID19 pandemic.
Demand was particularly strong for SUV models such as the Sorento, Seltos and Sportage.
Domestic sales in the first five months of the year almost 9% higher at 218,281 units from 200,465 units a year earlier.
Overseas sales plunged by 44% to 109,732 units in May from 195,943 units a year earlier, reflecting ongoing consumer and business restrictions in key regional markets, including in North America, Europe and Latin America.
Overseas sales in the first five months of the year were down by 23% at 705,833 units from 916,317 units.
GM Korea‘s global sales fell by almost 40% to 24,778 vehicles in May from 41,060 units in the same month of last year, reflecting lower domestic and overseas sales.
The company’s total sales in the first five months of the year were down by over 28% at 140,053 units from 194,721 units a year earlier.
Domestic sales fell by 11% to 5,993 units last month from 6,727 units a year earlier, helped by the recent launch of the locally-made Trailblazer SUV.
Local sales in the first five months of the year were still 6.5% higher at 31,743 units from 29,810 units previously.
Exports fell by over 45% to 18,785 units in May from 34,333 units a year earlier and by more than 34% to 108,312 units in the first five months of the year from 164,911 units.
Renault-Samsung, 80%-owned by France’s Renault, saw its global sales fall by 16% to 11,929 units in May from 14,228 units in the same month of last year, with a sharp rise in domestic sales more than offset by plunging exports. Total volumes in the first five months of the year fell by over 20% to 53,406 units from 67,158 in the same period of last year.
Domestic sales continued to rebound strongly last month, by over 72% to 10,571 units from 6,130 units a year earlier, driven by the recent launch of the new XM3 SUV and strong demand for the larger revised QM6.
Local sales year to date increased by close to 46% to 41,574 units from 28,942 units.
Exports plunged by over 83% to 1,358 units in May from 8,098 units a year earlier, reflecting mainly the discontinuation last year of export orders for the Rogue SUV from Nissan Motor of Japan.
Export volume in the first five months of 2020 was down by more than 69% at 11,832 units from 38,216 units.
Ssangyong Motor, majority-owned by India’s Mahindra & Mahindra, reported drop of close to 32% in global sales to 8,286 units in May from 12,122 units a year earlier, reflecting sharply lower domestic and export sales.
Overall sales in the first five months of the year were down by over 32% at 39,206 units from 58,030 in the same period of last year.
Domestic sales fell by over 25% to 7,575 units last month from 10,106 units a year earlier, resulting in an almost 35% drop in year to date sales to 31,109 units from 47,731 units.
Exports plunged by 68% to 711 units in May from 2,232 units previously and by almost 31% to 8,129 units in the first five months of the year from 11,739 units.
Last month Ssangyong launched a new entry level version of its Tivoli SUV in Europe fitted with a 1.2-litre engine to help lift overseas sales.
The company continued to struggle with mounting losses, however, with its performance this year deteriorating further as a result of the COVID-19 pandemic.
In April its Indian parent injected KRW40bn (US$33m) to help keep it afloat, but this was seen as just a short term fix.
This week Ssangyong announced the sale of its main service centre in Guro, Seoul, to local asset management firm PIA for KRW180bn (US$147m) in a sale and lease back deal to help improve liquidity.
