Domestic automakers all posted poor performance in the domestic market last month. Including Hyundai Motor, which faced production disruptions due to strikes, all five companies saw a decline in domestic sales. Each automaker has concluded this year's wage negotiations and collective bargaining agreements (CBAs) and aims to rebound in the second half of the year through the resumption of normal production and the launch of new models.
According to industry sources on the 1st, total domestic sales for the five companies—Hyundai Motor, Kia, KG Mobility (KGM), Renault Korea, and GM Korea—amounted to 79,601 units last month, a 28.3% decrease compared to the same period last year. Total sales including overseas markets reached 589,412 units, down 5.9%.
Hyundai Motor sold 288,574 units globally last month, a 14.2% decline. Domestic sales fell sharply by 41.1% to just 34,333 units. This was attributed to production disruptions at the Ulsan plant and other facilities due to the union strike that began in July, compounded by pent-up demand for new models.
By model, the Tucson saw the steepest drop, plummeting 86.4% to just 526 units. The Elantra fell 80.9% to 1,462 units, the Sonet dropped 65.7% to 1,034 units, and the Palisade declined 65.4% to 1,812 units. Genesis also saw a 51.2% decrease, with sales totaling 4,545 units across the G80 (1,460 units), GV70 (1,406 units), and GV80 (1,240 units). In contrast, the new Grandeur, which was recently launched, held steady with a 15.4% increase to 5,931 units, while the Santa Fe rose 8.9% to 3,596 units.
Overseas sales also remained subdued at 254,241 units, down 8.5%. A Hyundai Motor official emphasized, "We will expand our market share based on newly launched models such as the New Grandeur and the All-New Elantra."
Kia also saw a slight decline in domestic sales but managed to hold its ground through overseas performance. Global sales increased by 5% to 266,675 units last month, with domestic sales down 7.6% to 40,213 units and overseas sales up 7.4% to 225,413 units. The best-selling global model was the Sportage, with 46,239 units sold, followed by the Seltos (35,698 units) and the Sorento (18,404 units).
In Korea, sales of eco-friendly vehicles were particularly notable. Kia sold 24,894 eco-friendly vehicles domestically last month, a 24.4% increase compared to the same period last year, accounting for 61.9% of its domestic sales. In particular, electric vehicles surged 69.4% to 19,085 units, with the EV3 (3,174 units), EV5 (3,146 units), and Ray EV (1,201 units) all posting solid results.
A Kia official stated, "We continued our growth momentum in overseas markets through customized sales strategies based on regional demand," adding, "In the remaining second half of the year, we will sustain growth momentum centered on electrified vehicles such as the HYBE Leader in the U.S. and electric cars in Europe."
The three mid-sized automakers experienced even more pronounced domestic slumps. KGM sold 6,860 units (2,300 domestically and 4,560 for export), a 22.6% decrease, with domestic sales falling 43.3%. Renault Korea sold 4,261 units, down 34%, with domestic sales dropping 47.7% to 2,024 units and exports declining 13.6% to 2,237 units. GM Korea saw a 12.4% increase in exports but domestic sales fell sharply by 39.4% to just 731 units.
The passenger vehicle industry is expected to focus on resuming normal production and expanding profitability in the second half of this year. Hyundai Motor will launch new models including the new Tucson and Genesis GV80 HYBE Leader, while Kia will continue its regional electrification strategy, featuring the HYBE Leader in the U.S. and electric vehicles in Europe. Renault Korea plans to sequentially release the 2027 Grand Koleos, the White Edition "Étoile," and the Techno entry trim of the mid-size crossover Filant this month. Following the launch of its brand in Myanmar last month, KGM plans to sequentially expand its KD (local assembly production) projects in Saudi Arabia and Vietnam.
in INDUSTRY
