This year, automobile sales have generally stagnated, and forecasts indicate that it will be difficult to see a noticeable rebound in sales next year. This is because among the new cars scheduled to be launched next year, there are almost no so-called "volume models" that have strong demand at a reasonable price.

According to the domestic finished vehicle industry on the 22nd, Hyundai Motor plans to launch the Ioniq 9, which was unveiled at the Los Angeles (LA) Auto Show last month, and a full model change of its large sports utility vehicle (SUV) Palisade next year. Both vehicles have strong consumer interest, but the large SUV is a model with limited demand, making it difficult to expect sales that can drive overall performance. In particular, the Ioniq 9 is an electric vehicle that has less demand compared to internal combustion engine vehicles.

Hyundai's large electric SUV Ioniq 9. /Courtesy of Hyundai

The largest proportion of domestic finished vehicle sales comes from models such as compact, mid-size sedans, and SUVs. Among Hyundai Motor's sales vehicles, the sedans include the Avante and Sonata, while the SUVs include the Tucson and Santa Fe, which belong to the volume models. Although the Grandeur is classified as a large sedan, it is also considered a volume model due to its lower price range compared to the premium brand Genesis.

Hyundai Motor plans to launch a partial change model of the Ioniq 6, the high-performance Ioniq 6N, and the complete model change of the hydrogen fuel cell vehicle Nexo next year. As the electric vehicle market has been experiencing a prolonged "chasm" (temporary demand slowdown), it is expected that these models will also find it difficult to boost overall sales performance.

Kia is also facing a situation where there are few volume models among new cars next year. Kia will launch the high-performance model of the EV9, a mid-size SUV, and the partial change model of the EV6 GT, a compact SUV. It will also introduce the compact sedan EV4 and the compact SUV EV5. A new pickup truck, the Tasman, will also be sold. Although there are many new vehicles being introduced, most are electric vehicle models, making significant performance improvement difficult to forecast.

At the press conference held at the '2024 Jeddah International Motor Show' in Jeddah, Saudi Arabia last Oct., Kia unveils the pickup truck Tasman. /Courtesy of Kia

According to the automobile sales statistics analysis firm Kaizu Yu, from the beginning of this year until November, Kia's top-selling models included internal combustion engine vehicles such as the Sorento, Carnival, Seltos, Ray, and K8. The cumulative sales of the best-selling electric vehicle, the EV3, stand at 11,982 units, which is about one-eighth of the top-selling model, the Sorento (86,985 units).

Most of the new cars to be unveiled by Genesis, the premium brand of Hyundai Motor Group, are also electric vehicle models. The partial change model of the compact electric SUV GV60 and the electric partial change model of the mid-size SUV GV70 are set to start sales next year.

Other domestic finished vehicle manufacturers also lack new volume models. Renault Korea, which saw a significant increase in sales after launching the mid-size SUV Grand Kolios this year, is planning to import and sell the compact electric SUV Scenic next year. GM Korea has not yet finalized any new models to be allocated domestically.

KG Mobility is expecting a rebound in sales next year by emphasizing hybrid models, which have recently seen increased demand. The main sales vehicles, the mid-size SUV Torres and the Actyon, will add hybrid models next year. KG Mobility is developing powertrains in partnership with China's electric vehicle manufacturer BYD, which will first be installed in the Torres hybrid set to launch in the first half of next year.

An official from the finished vehicle industry noted, "As electrification has become the trend in the automobile market over the past few years, the proportion of electric vehicles among new cars being released has significantly increased." He further commented, "The proportion still held by internal combustion engine vehicles in total sales is much larger. Even if various new electric vehicle models are released next year, the impact on sales performance will be limited."