Hyundai Motor's domestic sales last month fell by more than 40%, marking the biggest drop in 6 years and 6 months. The union's intensive strikes amid wage talks tensions were the main factor. Kia, which overtook Hyundai Motor in the domestic market in July, also saw its domestic sales fall by nearly 8%, and the three mid-size carmakers mostly posted declines not only in domestic sales but also in exports, putting Korea's complete vehicle industry on alert.
On the 1st, Hyundai Motor(005380) said it sold 58,330 vehicles in the domestic market last month. That was a sharp drop of 41.1% from a year earlier, the biggest decline since February 2020 (39,290 vehicles, -26.4%). Overseas sales also fell 8.5% to 277,811 vehicles. As a result, total global sales came to 336,141 vehicles, down 14.2%.
The blow to Hyundai Motor's domestic sales largely stemmed from the labor union's strike. Hyundai Motor and the union were locked in severe conflict over this year's wage negotiations, and the union staged strikes totaling 60 hours from July through last month. On the 21st of last month, it also carried out an eight-hour full strike for the first time in 10 years. The industry estimates Hyundai Motor suffered production disruptions of 55,200 vehicles due to the strikes, with about 2.3 trillion won in revenue losses.
Breaking down domestic sales by model, sedans sold 10,922 units, including the Grandeur (5,931), Sonata (3,105) and Avante (1,462). Recreational vehicles (RVs) sold 10,810 units, with the Santa Fe (3,596) and Palisade (1,812) posting particularly strong results. Genesis sold a total of 4,545 units, led by the G80 (1,460), GV70 (1,406) and GV80 (1,240).
Kia, which had overtaken Hyundai Motor in the domestic market in July, also saw its domestic sales fall 7.6% last month to 40,213 units. A Kia official said, "Sales fell from a year earlier due to fewer working days during the summer vacation period." However, overseas sales rose 7.4% to 225,413 units, and special-purpose vehicles jumped 93.9% to 1,049 units. Combined total sales increased 5.0% to 266,675 units.
In the domestic market, the Sorento was the top seller with 6,397 units. The Carnival (4,186) and Ray (3,718) also ranked high. In overseas markets, the Sportage led with 42,365 units, followed by the Seltos (32,391) and K4 (17,519).
Among the three mid-size carmakers, GM Korea was the only one to grow sales. GM Korea sold 23,042 vehicles last month, up 9.4% from a year earlier. It sold 22,311 vehicles overseas, an increase of 12.4%. The Chevrolet Trax Crossover (18,223) rose 16.1%, leading overall export growth. However, domestic sales plunged 39.4% to 731 units.
KG Mobility(003620) (KGM) sold a total of 6,860 vehicles at home and abroad last month, including semi-knockdown (SKD) units. That was down 22.6% from a year earlier. Domestic sales fell 43.3% to 2,300 units, while exports decreased 5.1% to 4,560 units. A KGM official said, "Sales volumes declined due to factors such as a contraction in domestic market consumption," adding, "Starting with the Myanmar market, we plan to step up our push into global markets by sequentially expanding KD (assembly) operations in Saudi Arabia and Vietnam."
Renault Korea's domestic and overseas sales last month fell 34.0% from the same period a year earlier to 4,261 units. Domestic sales and exports were 2,024 and 2,237, down 47.7% and 13.6%, respectively. To revive domestic sales, Renault Korea will offer free warranty extensions of up to seven years or 140,000 kilometers, the highest level in the industry, to customers who buy the Filante and Grand Kolao starting this month.