In May, the combined domestic and overseas sales of Korea's five carmakers fell about 4% from a year earlier. At home, the five all saw year-over-year declines as the impact of a fire at a Hyundai Motor–Kia supplier overlapped with weaker demand. Only Kia, which rapidly expanded its lineup in global markets such as Europe, increased overseas sales and improved its results.
According to Hyundai Motor, Kia, GM Korea, KG Mobility, and Renault Korea on the 1st, the five companies sold a total of 664,370 vehicles in May in domestic and overseas markets (including semi-knocked down and special-purpose vehicles). That was down 3.97% from the same month a year earlier (691,853 units). Their combined domestic sales were 97,096 units, down 14.2% from a year earlier (113,139 units), while overseas sales were 567,053 units, down 2% from a year earlier (578,561 units).
The decline in the five companies' domestic sales appears to be due to Hyundai Motor. Hyundai Motor's domestic sales last month were 45,364 units, down 23.1% from the same month a year earlier. Production cuts from supply disruptions at a partner parts maker continued last month. A fire broke out at Daejeon Safety Industry in March, delaying engine parts supply and slowing production of key models. Hyundai Motor said, "Starting this month, we expect to shake off the impact of the March fire, and with deliveries of the new Grandeur under way, we will recover sales performance."
Hyundai Motor's overseas sales last month were 280,109 units, down 4.6% year over year. Analysts say that in Europe, where sales of electric vehicles and plug-in hybrid vehicles (PHEVs) are increasing, key models are somewhat aged and failing to capture demand. Aside from the small electric SUV Ioniq 3, there have been no recent new launches. Hyundai Motor's May domestic and overseas sales totaled 352,620 units, down 7.7% from a year earlier.
Kia, by contrast, managed to defend its market share overseas. Kia's overseas sales in May were 232,781 units, up 3.4% from a year earlier. The company's region-specific eco-friendly strategy appears to have worked. In the United States, Kia pushed hybrids (HEVs) such as the Telluride and Sportage, while in Europe it led with EVs. In particular, it greatly expanded its lineup in Europe from the small electric SUV EV2 to the large SUV EV9 and the purpose-built vehicle (PBV) PV5.
Domestic sales slipped slightly. Kia surpassed 50,000 units in April and, for the first time since being acquired and merged into Hyundai Motor in 1998, outpaced Hyundai Motor, but last month it came in at 44,713 units. That was down 0.6% from a year earlier. Despite lower domestic sales, higher overseas sales lifted Kia's May domestic and overseas tally to 277,715 units, up 2.7% year over year. Kia was the only one of the five carmakers to post growth.
The May domestic and overseas sales of General Motors' Korea operations (GM Korea) were 47,081 units, down 5.9% from a year earlier. Both domestic and overseas volumes declined. GM Korea's May domestic sales fell 42.6% to 808 units, and overseas sales decreased 4.8% to 46,273 units. Shipments of the small SUVs Trailblazer and Trax Crossover, which drive GM Korea's exports, decreased. They were 16,285 units and 29,988 units, down 0.6% and 7% from a year earlier, respectively.
Renault Korea sold 2,893 units domestically and 3,020 units overseas in May. Compared with a year earlier, domestic sales fell 31.2% and overseas sales dropped 46.4%, bringing total sales down 40% to 5,913 units. Renault Korea said overseas sales were reduced due to shipping schedules affected by instability in the Middle East.
KG Mobility (KGM) disclosed that in May it sold a total of 8,188 units, including 3,318 units domestically, 4,840 units for export, and 30 units as complete knock-down (CKD) kits. Domestic sales fell 6.8% from a year earlier, and exports declined 9.7%. Total sales were down 10% from the same month last year. A KGM official said, "Production fell last month due to line readjustment to prepare for the new Torres, and we were affected by high oil prices and a contraction in the global market," adding, "We will strengthen our response to domestic and overseas markets through new models."