Domestic automakers all recorded poor performance in the domestic market last month. All five companies, including Hyundai Motor which faced production disruptions due to strikes, saw a decline in domestic sales. Each automaker has concluded this year's wage negotiations and collective bargaining agreements (CBAs), aiming for recovery through normalized production and the launch of new models in the second half of the year.
According to industry sources on the 1st, total domestic sales by 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. Including overseas sales, total global sales reached 589,412 units, down 5.9%.
Hyundai Motor sold 288,574 units globally last month, a 14.2% decline. Domestic sales during the same period dropped sharply by 41.1% to just 34,333 units. This was due to production disruptions at plants such as the Ulsan facility following the union strike that began in July, compounded by pent-up demand for new models.
By model, 'Tucson' sales plummeted by 86.4% to just 526 units, marking the steepest decline. 'Elantra' fell by 80.9% to 1,462 units, 'Kona' dropped by 65.7% to 1,034 units, and 'Palisade' decreased by 65.4% to 1,812 units. Genesis also saw a 51.2% decline, with sales totaling 4,545 units across the 'G80' (1,460 units), 'GV70' (1,406 units), and 'GV80' (1,240 units). In contrast, the newly launched 'Grandeur' increased by 15.4% to 5,931 units, while 'Santa Fe' rose by 8.9% to 3,596 units, showing resilience.
Overseas sales also declined by 8.5%, reaching 254,241 units. A Hyundai Motor official emphasized, "We will expand our market share based on newly launched models such as 'The New Grandeur' and 'All-New Elantra.'"
Kia also saw a slight decline in domestic sales but managed to offset this with growth in overseas markets. 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 'Sportage' with 46,239 units sold, followed by 'Seltos' (35,698 units) and 'Sorento' (18,404 units).
In the domestic market, sales of eco-friendly vehicles stood out. Kia sold 24,894 eco-friendly vehicles in Korea last month, a 24.4% increase compared to the same period last year, accounting for 61.9% of its total domestic sales. Notably, electric vehicle sales surged by 69.4% to 19,085 units, with 'EV3' (3,174 units), 'EV5' (3,146 units), and 'Ray EV' (1,201 units) all contributing evenly to the results.
The three mid-sized automakers experienced even more pronounced domestic market weakness. KGM sold 6,860 units in total—2,300 domestically and 4,560 for export—down 22.6%, with domestic sales falling by 43.3%. Renault Korea sold 4,261 units, a 34% decline; domestic sales dropped 47.7% to 2,024 units, while exports fell 13.6% to 2,237 units. GM Korea saw a 12.4% increase in exports but domestic sales declined by 39.4% to just 731 units.
The passenger vehicle industry is expected to focus on normalizing production and expanding profitability in the second half of this year. Hyundai Motor will introduce new models such as the updated Tucson and Genesis GV80 HYBE Ride, while Kia continues its regional electrification strategy, launching the HYBE Ride in the U.S. and electric vehicles in Europe. Renault Korea plans to sequentially release the 2027 model 'Grand Koleos', the White Edition 'Étoile', and the entry-level trim 'Techno' of the mid-size crossover 'Philant'. KGM, having launched its brand in Myanmar last month, plans to sequentially expand KD (local assembly production) projects in Saudi Arabia and Vietnam.
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