Skip to site menu Skip to page content

Daily Newsletter

02 November 2023

Daily Newsletter

02 November 2023

South Korean market down 2% in October

Market rebound is running out of steam

David Leggett November 02 2023

Domestic sales by South Korea’s five main automakers combined fell by 2% to 117,622 units in October 2023 from 120,192 a year earlier, according to preliminary wholesale data released individually by the manufacturers. The data do not include sales by South Korea’s low-volume commercial vehicle manufacturers including Tata-Daewoo and Edison Motors, while import brands are covered in a separate report.

The domestic vehicle market in October was underpinned mainly by a strong performance by Hyundai, while overall sales look to be slowing after the strong rebound in the first half of the year – with consumers and local businesses come under increasing pressure from higher borrowing costs following last year’s sharp interest rate hikes.

In the first ten month of the year domestic vehicle sales were up by almost 7% at 1,208,169 units year-on-year from 1,131,060 units, with Hyundai Motor reporting a 13% rise to 627,847units and Kia Corporation an 8% increase to 473,430 units. GM Korea’s sales were just slightly at 33,525 units in this period, underpinned by the introduction of the new Trax crossover model at its Changwon plant in February. KG Mobility’s sales were down by 3% at 54,788 units, while Renault Korea’s sales plunged by 58% to 18,579 units.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close