Kia once again overtook Hyundai Motor in the domestic market last month. It has been three months since the first reversal in April. This was due to production disruptions caused by a strike by Hyundai Motor's labor union. Hyundai Motor plans to stabilize production operations and create a rebound momentum with new model launches in the second half.
According to Hyundai Motor and Kia on the 3rd, Kia's domestic sales last month were 54,604 units, 6,491 more than Hyundai Motor's 48,113 units. In terms of year-over-year change, Kia's domestic sales rose 21.3%, while Hyundai Motor fell 14.4%, showing a stark contrast.
This is the second time since April that Kia has surpassed Hyundai Motor in domestic sales. It was the first time in 28 years since 1998, when Kia was integrated into Hyundai Motor Group. At that time, the reversal in the two companies' sales volumes was largely due to a fire at Daejeon Safety Industry, a Hyundai Motor parts supplier. This time, too, production disruptions hobbled Hyundai Motor, as the union held three separate three-day strikes last month.
However, Hyundai Motor's weak domestic sales cannot be explained solely by a temporary union strike. The company has posted negative growth for six straight months since February. After double-digit year-over-year declines in April and May, the drop narrowed to -6.2% in June, but widened again to -14.4% last month.
Overseas results are similar. Hyundai Motor's overseas sales last month were 270,341 units, still ahead of Kia's 242,556 units, but down 3.2% from a year earlier, marking 10 straight months of decline. Kia, by contrast, rose 11.6%. As a result, Hyundai Motor's combined domestic and overseas sales were 318,454 units, down 5.1% year over year. Kia sold 298,037 units, including 877 special-purpose vehicles, up 13.4%.
Unlike Hyundai Motor, which has a raft of new models slated for the second half, Kia is seen as performing well through its electrification strategy. On the day, Kia also unveiled a new lineup of its flagship electric purpose-built vehicle (PBV), the "PV5," and refreshed-year models of the PV5 and EV6. A Kia official said, "Buoyed by strong sales of electric and hybrid models at home and abroad, we have posted year-over-year sales growth for five consecutive months."
A Hyundai Motor official said, "In July, overall industry demand contracted, and we were affected by production disruptions due to the strike and by pent-up demand for new models," adding, "In the second half, we will roll out competitive new models, including 'The All New Avante,' while stabilizing production operations to strengthen sales momentum."
Among mid-sized finished carmakers, GM Korea sold a total of 42,199 units in Korea last month, up 30.6% from a year earlier. Overseas sales grew 33.3% to 41,353 units, but domestic sales plunged 37.5% to 755 units, rapidly eroding its presence in the home market.
KG Mobility sold a total of 8,551 units last month, including 2,610 domestically and 5,941 overseas. Compared with the same month a year earlier, exports rose 17.0%, but domestic sales fell 41.4%, pushing total sales down 11.1%. Renault Korea sold a total of 3,030 units at home and abroad last month, down 58.2%. Domestic sales (1,704 units) and exports (1,326 units) fell 57.4% and 59.2%, respectively.