Domestic automakers are experiencing mixed results amid steady overall sales. Hyundai Motor Company has seen a simultaneous decline in both domestic and international markets, leading to a significant sales gap. Despite launching new models like the redesigned Avante in the second half of the year, it remains uncertain whether these efforts will effectively boost sales.
According to industry reports, from January to August this year, the five major domestic automakers (Hyundai, Kia, GM Korea, KG Mobility, and Renault Korea) sold a total of 5,225,012 vehicles globally. This figure represents a decrease of 53,034 units (1.0%) compared to the same period last year (5,278,046 units).
While the overall sales decline for the five companies was limited to 1%, Hyundai's struggles were particularly pronounced. The company sold 2,575,360 units during this period, a drop of 163,255 units (6.0%) from the previous year. Domestic sales fell by 15.0% to 399,159 units, while international sales decreased by 4.1% to 2,176,201 units. In contrast, Kia reported a 4.4% increase in sales, totaling 2,196,123 units.
The sharp decline in Hyundai's sales cannot be attributed solely to last month's strike. Cumulative sales from January to July were already down 4.8% year-on-year, totaling 2,286,554 units. Sales in July alone also fell by 5.1%.
Although new models are being introduced in the second half of the year, the potential for recovery remains uncertain. The recently launched eighth-generation 'All-New Avante' sold only 607 units in August. Additionally, recent pricing controversies have added to the challenges. The new Avante has eliminated the entry-level 'Smart' trim, starting instead with the 'Modern' trim, which, with added options, exceeds 40 million won. This has led to perceptions that the price has increased compared to its previous status as a 'first car for the people.'
Jose Munoz, President of Hyundai Motor, addressed the pricing concerns last month, stating, "If we determine that price adjustments are necessary based on market conditions, we will take appropriate measures," adding that adjustments to content or the use of incentives could be considered. However, due to production difficulties caused by the strike shortly after the launch, sales in September and October will be critical in assessing the new Avante's market performance.
Additionally, Hyundai plans to launch the fifth-generation fully redesigned 'All-New Tucson' next month. As a key volume SUV that has surpassed 10 million units in global sales, the Tucson represents another opportunity for sales recovery. With ongoing pricing debates surrounding the Avante, attention is now focused on the Tucson's pricing and initial market response.
An industry insider noted, "The market reaction is influenced by the perceived value of the Avante in relation to its price. With many new models set to launch in the second half of the year, increased competition is expected among automakers."
* This article has been translated by AI.
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