Domestic sales by South Korea’s five largest automakers combined rose by 4.5% to 126,336 vehicles in August from 120,847 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 was sales of imported vehicles which accounted for around 13% of the total vehicle market last year. These will be covered in a separate report when the data is released later in the month.
The two largest domestic brands, Hyundai and Kia, reported strong sales growth last month – of 7.4% to 58,582 units and 7.7% to 44,200 units respectively – helped by new SUVs.
Ssangyong enjoyed the sharpest rise, 9.7% to 9,055 units, helped by strong demand for the new Rexton Sport, while Renault-Samsung’s sales were just 1.5% higher at 7,108 units.
By contrast, GM Korea reported a 26% drop in sales to 7,391 units despite the recent launch of the US-made Equinox mid-size SUV.
Overall domestic sales declined by 1.4% to 1,017,131 units in the first eight months of the year compared with 1,031,143 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, were up by 1% at 655,346 units in August from 648,791 units a year earlier reflecting mainly strong domestic sales.
Total volume in the first eight months of the year was up by 1.4% at 5,349,007 units from 5,275,585 units previously.
Overseas sales, including vehicles produced overseas by Hyundai and Kia, rose by just 0.2% to 529,010 units last month from 527,944 units a year earlier, helped by rebounding sales in China from depressed year earlier levels.
Overseas sales in the first eight months of the year were 2.2% higher at 4,332,452 units compared with 4,237,639 units a year earlier.
Hyundai Motor‘s global sales rebounded by 9.2% to 384,443 units in August from 352,078 units a year earlier, following a pull back in the previous month, reflecting stronger domestic and overseas sales.
The brand’s total deliveries in the eight months of the year were 3.7% higher at 2,967,037 units from 2,860,057 units previously.
Domestic sales rebounded by 7.4% to 58,582 units last month from 54,560 units a year earlier, helped by the recent launch of the new Santa Fe and Kona SUVs. Volume was also higher as Hyundai made up for output lost in July due to industrial action.
Domestic sales in the first eight months of the year were 3.1% higher at 473,330 units compared with 458,957 units a year earlier.
Hyundai’s overseas sales jumped by 9.5% to 325,861 units in August from 297,518 units a year earlier, helped by a continued recovery in China from depressed year earlier sales.
In the first eight months of the year, overseas sales were 3.8% higher at 2,493,218 units compared with 2,401,100 units a year earlier. The global roll out of the new Santa Fe and Tucson SUVs was expected to lift overseas sales further in the second half of 2018.
Kia Motors‘ global sales fell by 0.2% to 223,648 units in August from 224,208 units a year earlier, with stronger domestic sales offset by weaker overseas sales. In the first eight months of the year, overall sales were 3.8% higher at 1,839,320 units from 1,772,499 units previously.
Domestic sales rose by 7.7% to 44,200 units last month from 41,027 units a year earlier, thanks to strong demand for new models including the new K9 luxury flagship, the Stonic compact SUV and the new K3 compact sedan.
In the first eight months of the year, local sales were 5.4% higher at 358,900 units compared with 340,571 units previously.
Overseas sales declined 2% to 179,448 units from 183,181 units a year earlier while year to date volume was 6% higher at 1,477,408 units compared with 1,394,320 units a year earlier.
GM Korea‘s global sales plunged by over 44% to 23,101 units in August from 41,311 units a year earlier, reflecting sharp declines both in its home market and overseas. Sales in the first eight months of the year were more than 15% lower at 306,533 units compared with 361,716 units in the same period of 2017.
Domestic sales fell by over 26% to 7,391 units last month from 10,004 units a year earlier. Despite the launch of the US-made Equinox SUV and the facelifted Spark minicar in June the brand is struggling to keep up with new products from Hyundai and Kia and confidence has also been undermined by the company’s struggle to avoid bankruptcy earlier in the year.
GM Korea has pledged to launch 15 new models domestically over the next five years, after its main shareholders injected fresh capital in the company and approved a broad cost cutting programme in April.
Cumulative eight month domestic sales were down by 37% at 58,888 units from 93,513 units in the same period of last year.
Exports fell by almost 50% to 15,710 units in August from 31,307 units a year earlier and were 7.7% lower at 247,645 units year to date from 268,203 units previously.
Renault-Samsung‘s global sales fell by close to 35% to 12,733 units last month from 19,469 units a year earlier, reflecting a sharp drop in exports. Overall sales in the first eight months of the year were almost 12% lower at 157,316 units compared with 178,658 units previously.
Domestic sales held out last month with volume rising 1.5% to 7,108 units from 7,001 units a year earlier, although cumulative eight month sales were almost 18% lower at 55,630 units from 67,808 units.
Exports plunged by close to 55% to 5,625 in August from 12,468 units a year earlier on lower overseas demand for the Rogue SUV and were 8.3% lower at 101,686 units year to date from 110,848 units previously.
Ssangyong Motor, majority owned by India’s Mahindra & Mahindra, reported a 3.2% fall in built-up vehicle sales to 11,349 units in August from 11,725 units a year earlier – reflecting sharply lower exports.
Global sales in the first eight months of the year were 2.7% lower at 90,925 units from 93,483 units previously.
Domestic sales rose by 9.7% to 9,055 units in August from 8,255 a year earlier, helped by strong demand for the Rexton Sport but were flat at 70,383 units year to date from 70,382 units previously.
Exports dropped by almost 32% to 2,366 units last month from 3,470 a year earlier and were down by 8.8% at 21,064 units in the first eight months of the year from 23,101 units.
