Domestic sales at mid-sized finished carmakers continue to decline. With no new models, flagship models are underperforming while imported brands steadily expand their foothold. The three companies' combined annual sales, which held at 200,000 units through 2020, are expected to come in at around 100,000 units this year.
According to the industry on the 6th, last month the three mid-sized finished carmakers (Renault Korea, KG Mobility, and GM Korea) all posted double-digit declines in domestic sales from a year earlier. Renault Korea sold 3,810 units, down 40.4%; KG Mobility (KGM) sold 3,537 units, down 21.5%; and GM Korea sold 1,194 units, down 39.5%.
With overall production down last month due to the Chuseok holiday, neither new models nor flagship models provided much lift. If sluggish domestic demand persists, the three mid-sized firms' market share is expected to fall further. Market share, which was 11.2% in 2021, had already dropped to 7.6% last year.
At Renault Korea, growth in sales of the mid-size sport-utility vehicle (SUV) Grand Koleos, which had been a hit since its launch last year, appears to be slowing. The Grand Koleos sold 5,385 units in Oct. last year, but last month's sales were just 2,934 units.
The sales boost from the Scenic E-Tech electric vehicle, introduced in Korea in Aug., is also minimal. Last month, Scenic sales were 22 units, about half of the previous month's 50 units. Scenic was limited to 999 units for the Korean market, but cumulative sales remain at 120 units. The only model that increased in sales was the Arkana, with 447 units sold, up 29.2% from Oct. last year.
GM Korea has not released a new model for a long time, and sales of its flagship models, the Trax Crossover and Trailblazer, are also declining. Last month, the Trax Crossover sold 959 units, down 36.7% from a year earlier; the Trailblazer sold 181 units, down 40.8%; and the Colorado mid-size pickup truck launched last year sold 14 units, down 48.1%.
In the first through third quarters this year, the three mid-sized firms' cumulative domestic sales totaled 82,464 units, and full-year sales are expected to barely top 100,000 units. If sales fall short of last year's 109,101 units, it would mark the lowest on record. Each company's nine-month cumulative sales are trailing BMW (57,840 units), Mercedes-Benz (48,248 units), and even Tesla (43,637 units).