Domestic sales by South Korea’s five largest automakers increased by 4.3% to 144,839 units in December from 138,844 units in the same month of last year, according to preliminary data released individually by the companies.
The data do 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 are covered in a separate report when the data are released later in the month. Together these account for around 15% of total vehicle sales in the country.
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Leading domestic brands such as Hyundai and Kia continued their intense new product offensive, which has helped support demand even as economic growth in the country weakened significantly last year. The latest government data shows annual economic growth at below 2% in the January-September period of 2019, reflecting deteriorating domestic sentiment and weak exports. The trade war between the USA and China continued to affect exports, while relations with its neighbour Japan also remain strained. Bank of Korea has cut its benchmark interest rate by 25 basis points on two occasions since last July to 1.25% to help shore up consumer spending.
The two leading car brands reported stronger sales in December, with Hyundai’s sales rising by 2.3% to 66,335 units while Kia’s sales jumped by over 16% to 49,130 units. GM Korea’s sales fell by over 15% to 8,820 units, however, while Renault-Samsung’s sales declined by 7.6% to 9,980 units and Ssangyong were down by just under 1% to 10,574 units.
Overall domestic sales last year declined by less than 1% to 1,533,206 units from 1,545,704 in 2018.
Global sales among the country’s “big-five” automakers, including vehicles produced overseas by Hyundai and Kia, fell by 5.2% to 690,721 units in December from 728,804 units a year earlier – reflecting weaker overseas sales. The industry’s global sales last year were 3.8% lower at 7.92 million units from 8.24 million in the same period of last year.
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By GlobalDataOverseas sales, including exports and vehicles produced overseas by Hyundai and Kia, fell by 7.5% to 545,882 units in December from 589,960 units a year earlier, reflecting continued weak demand in key developing markets such as China, India and Russia. Last year overseas sales were down by 4.5% at 6.39 million units from 6.69 million in the previous year.
Hyundai Motor‘s global vehicle sales fell by 3.9% to 396.569 units in December from 412,750 units a year earlier, reflecting weaker overseas sales. Over the full year, the brand’s global sales were 3.6% lower at 4,422,644 units from 4,589,199 units in the previous year.
Domestic sales increased by 2.3% to 66,335 units last month from 64,835 units a year earlier, reflecting strong demand for the recently-facelifted Grandeur and the Sonata sedans, as well as for its growing range of SUVs. Hyundai plans to launch the Genesis GV8o SUV later this month to further strengthen its SUV line-up. Total domestic sales last year were 2.9% higher at 741,842 units from 721,078 units previously.
Overseas sales fell by 5.1% to 330,234 units in December from 347,915 units a year earlier and were down by 4.8% at 3,680,802 units over the full year from 3,868,121 units in 2018 – mainly reflecting declining sales in developing markets such as China, India and Russia, which more than offset stronger sales in North America and Europe – which were lifted by the global roll-out of new SUV models such as the Pallisade, Kona and Venue.
Kia Motor’s global sales fell by 6.5% to 225,446 vehicles in December from 241,199 units a year a year earlier, reflecting a sharp drop in overseas sales. Over the full-year, the brand’s global fell by 1.5% to 2,770,693 units from 2,812,200 units in 2018.
Domestic sales jumped by over 16% to 49,130 units last month from 42,200 units a year earlier, driven by strong demand for new SUVs including the facelifted Mohave and the new Seltos, and the new K5 sedan launched last month. Full-year sales were still lower by 2.2% at 520,205 units from 531,740 units previously.
Overseas sales plunged by over 11% to 176,316 vehicles in December from 198,999 units a year earlier and were down by 1.6% at 2,243,589 over the full year from 2,280,500 units in 2018 – reflecting mainly continued weak demand in China and other key emerging markets which more than offset higher sales in the USA and Europe. The company has stepped up its new model launches this year, with new SUVs such as the all-new Soul, the Telluride and Seltos currently being rolled out globally.
GM Korea‘s global sales declined by 8.5% to 38,818 vehicles in December from 42,424 units a year earlier, reflecting sharply weaker domestic and export sales. Full-year sales were almost 10% lower at 417,226 units compared with 462,871 units in 2018.
Domestic sales plunged by over 15% to 8,820 units in December from 10,428 units a year earlier, bringing the year-to-date total to 76,471 units – down by almost 18% from 93,117 units in 2018. Exports declined by 6.2% to 29,998 units last month from 31,996 a year earlier, resulting in full-year exports declining by just under 8% to 340,755 units from 369,554 units previously.
GM Korea began deliveries of its imported Transverse SUV in September and the US-made Colorado pickup truck in October, to help lift domestic sales in a market dominated by Hyundai and Kia. The company was also scheduled to begin local production of the Trailblazer SUV by the end of last year, although this looks to have been delayed.
Renault-Samsung, which is 80%-owned by France’s Renault, saw its global sales drop by over 8% to 16,965 vehicles in December from 18,462 units a year earlier – reflecting weaker domestic and export sales. Overall sales last year were more than 21% lower at 178,698 units compared with 227,588 units in 2018.
Domestic sales fell by 7.6% to 9,980 units in December from 10,805 units a year earlier and were down by close to 6% at 76,879 units over the full-year year compared with 81,564 units in 2018. Exports declined by 8.8% to 6,985 units last month from 7,657 units a year earlier and were down by over 34% at 88,938 units last year from 135,222 units previously – reflecting the discontinuation of export orders by Nissan Motor for the Rogue SUV.
Renault-Samsung has been forced to look elsewhere to maintain production volumes at its plant in Busan. The company began producing the Renault Twizy small electric vehicle in October with an annual domestic sales target of between 5,000-15,000 units, with the model also being re-exported back to Europe.
Renault Samsung last month said it aims to lift domestic sales to over 100,000 units in 2020 with the launch of three all-new models and three upgraded models during the year. This includes an all-new XM3 compact SUV to be launched in the first quarter, followed by the second-generation QM3 SUV and the all-new ZOE battery-powered electric vehicle in the second quarter of the year. The models to be revised include the SM6 sedan, QM6 SUV and Master van.
Ssangyong Motor, majority-owned by India’s Mahindra & Mahindra, reported an 8.8% drop in global vehicle sales to 12,923 units in December from 14,177 units a year earlier, mainly reflecting a sharp decline in exports. Global sales fell by 6.5% to 132,799 units last year from 141,995 units in 2018 on weaker sales of the Tivoli and G4 Rexton SUVs.
Domestic sales declined by just under 1% to 10,574 units in December from 10,656 a year ago and were 1.2% lower at 107,829 units last year from 109,140 units in 2018. Exports plunged by one-third to 2,349 units last month from 3,521 units and were down by 19% at 27,446 units last year from 33,881 units in 2018.
