Domestic sales by South Korea’s five largest automakers combined fell by 1.3% to 133,663 vehicles in May from 135,443 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 such as Tata-Daewoo and Daewoo Bus Corporation, which typically account for less than 1% of the domestic vehicle market.
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Also not included in the data were sales of imported vehicles which accounted for just under 13% of the total vehicle market last year. These will be covered in a separate report when the data is released later this month.
“GM Korea continued to weigh heavily on the domestic market last month, reflecting rising competition from Hyundai and Kia and with confidence in its Chevrolet and other brands continuing to plunge as the future of the company remained in the balance”
GM Korea continued to weigh heavily on the domestic market last month, reflecting rising competition from Hyundai and Kia and with confidence in its Chevrolet and other brands continuing to plunge as the future of the company remained in the balance. Its domestic sales fell by 35% to 7,670 units after similarly large declines in previous months.
Renault-Samsung also reported sharply lower sales last month, down 20% to 7,342 units, while Ssangyong’s sales were 5.2% lower at 9,709 units.
The market’s two leading brands enjoyed stronger sales last month, with Hyundai reporting a 2.1% rise to 61,896 units and Kia an 8.1% rise to 47,046 units.
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By GlobalDataOverall, domestic sales declined by 2.3% to 625,176 units in the first five months of 2018 compared with 639,843 units in the same period of last year.
Global sales by the country’s ‘big-five’ automakers, including vehicles produced overseas by Hyundai and Kia, rose by 5.2% to 704,111 units in May from 669,033 units a year earlier – reflecting a continued recovery in overseas sales.
Sales in the first five months of the year were up slightly year-on-year, by 0.6% at 3,308,655 units from 3,288,310 units previously.
Overseas sales, including vehicles produced overseas by Hyundai and Kia, increased by 6.9% to 570,448 units last month from 533,590 units in same month last year, as sales in China and the US began to recover from weak year-earlier levels.
Overseas sales in the first five months of the year were 1.6% higher at 2,683,479 units compared with 2,641,664 units a year earlier.
Hyundai Motor‘s global sales rose by 5.7% to 387,017 units in May from 366,256 units a year earlier, reflecting both higher domestic and overseas sales. Deliveries in the first five months of the year were 1.9% higher at 1,828,189 units from 1,785,830 units previously.
Domestic sales grew by 2.1% to 61,896 units from 60,607 units a year earlier, helped by strong demand for the new Santa Fe mid-size SUV and the recently launched Kona compact SUV. Sales in the first five months of the year were 4.2% higher at 294,887 units from 282,946 units a year earlier.
Overseas sales increased by 6.4% to 325,121 units in May compared with 305,649 units a year earlier. The cumulative five-month total turned positive, with sales rising by just over 2% to 1,533,302 units compared with 1,502,884 units a year earlier, reflecting recovering demand in China and the US and continued growth in India. The roll-out of the new Santa Fe SUV overseas will help improve the brand’s performance in the second half of the year.
Kia Motors‘ global sales continued to rebound in May with volumes rising by 9% 247,176 units from 226,826 units a year earlier on stronger domestic and overseas sales. Volumes in the first five months of the year were 3.9% higher at 1,133,578 units from 1,091,274 units previously.
Domestic sales increased by 8.1% to 47,046 units in May from 43,522 units a year earlier, helped by new models such as the newly-launched luxury flagship K9, as well as the Stonic compact SUV and the K3 compact sedan. Sales in the first five months of the year were 6.1% higher at 221,700 units compared with 208,918 units.
Overseas sales increased by 9.2% to 200,130 units last month from 175,606 units a year earlier, with sales in China and the US beginning to recover from depressed year-earlier levels.
Sales abroad in the first five months of the year were 7.6% higher at 908,866 units compared with 844,748 units a year earlier. The company expects a 25% sales rebound in China to 450,000 units this year and stronger second half sales in the US.
GM Korea‘s global sales continued to fall in May, by 5.1% to 40,879 from 43,085 a year earlier, reflecting sharply lower domestic sales – which the company has blamed on a lack of new models. Global sales in the first five months of the year were 15% lower at 199,840 units compared with 235,306 units in the same period of 2017.
Domestic sales fell by over 35% to 7,670 units in May from 11,854 units a year earlier, reflecting rising uncertainty over the future of the Chevrolet brand and intensifying competition from Hyundai and Kia. Demand for the Cruze and Malibu models was particularly weak last month.
Domestic sales in the first five months of the year sales were down by over 46% at 32,968 units compared with 61,253 units a year earlier.
GM Korea hopes that with an injection of fresh capital by its shareholders and the implementation of a restructuring plan, which so far has involved the closure of its Gunsan assembly plant, it can return to growth and profitability.
The company has pledged to launch 15 new models in South Korea over the next five years starting with the unveiling of a facelifted Spark small car last month. The company plans to launch the US-built Equinox SUV in June and an upgraded Malibu mid-size sedan later in the year.
Exports rose by 6.3% to 33,209 units in May, from 31,231 units a year earlier, but were 4.1% lower at 166,872 units in the five months of the year from 174,053 previously.
Renault-Samsung‘s global sales fell by 21.5% to 16,101 units in May from 20,517 units a year earlier, reflecting both sharply lower domestic and export sales. Sales in the first five months of the year were just 4.6% lower at 104,097 units compared with 109,080 units previously.
Domestic sales fell by just over 20% to 7,342 units last month from 9,222 units a year earlier, while cumulative five-month sales were 23% lower at 33,800 units from 43,880 units.
Exports declined by more than 22% to 8,759 units in May from 11,295 units a year earlier on lower demand for the Rogue SUV, but were still 7.8% higher at 70,297 units in the first five months of the year compared with 65,198 units previously – after strong growth in previous months.
Ssangyong Motor, majority-owned by India’s Mahindra & Mahindra, reported a 4.6% increase in built-up vehicle sales to 12,920 units in May from 12,349 units a year earlier on sharply higher overseas sales. Global sales in the first five months of the year were 5.4% lower at 54,514 units from 57,648 units previously, however.
Domestic sales fell by 5.2% to 9,709 units last month from 10,238 units a year earlier and by 2.6% to 41,821 units in the January-May period from 42,934 units previously.
Exports jumped by 53% year-on-year to 3,229 units in May from 2,111 units previously, but were still down by almost 14% at 12,711 units in the first five months of the year from 14,714 units.
See also: South Korea’s import sales jump 21% in May
