Kia has significantly narrowed the gap with Hyundai in domestic sales, driven by strong demand for its popular recreational vehicles (RVs) and new electric models. This shift threatens Hyundai's long-standing dominance in the market.
According to industry data released on October 1, Hyundai and Kia sold 448,181 and 436,301 units, respectively, in South Korea from January to September this year. While Hyundai remains in the lead, the difference is just 11,880 units.
The sales gap between the two companies has sharply decreased over the past year. In the same period last year, Hyundai sold 535,458 units compared to Kia's 413,942, resulting in a difference of over 120,000 units. This year, the gap has contracted to about one-twelfth of that amount, with Kia's sales increasing by 5.4% year-on-year, while Hyundai's dropped by 16.3%.
In April, Kia surpassed Hyundai in monthly domestic sales for the first time since joining the Hyundai Group in 1998, and it continued to outsell Hyundai in July and August. This trend has contributed to a significant reduction in the cumulative sales gap for the third quarter.
Kia's rise can be attributed to several factors. The company has maintained growth with its key RV models, such as the Sorento, Sportage, and Carnival, while Hyundai has faced production disruptions due to strikes and a transition to new models.
Notably, Kia's mid-size SUV, the Sorento, became the best-selling vehicle in South Korea during the first half of the year, surpassing Tesla's Model Y. Kia's electric vehicle sales also reached a record high of 72,078 units in the first half, marking a 151.1% increase from the previous year. Expanding its sales portfolio to include electric models like the EV3, EV5, and purpose-built vehicles (PBV) PV5 has proven effective.
In contrast, Hyundai has struggled with production and operational disruptions due to strikes and the introduction of new models. In August, Hyundai's domestic sales fell to 34,333 units, a 41.1% decrease compared to the same month last year. Although the company has introduced new models like the New Grandeur and the All-New Avante in the second half of the year to boost sales, it has not fully recovered from the earlier production setbacks.
The global market reflects a similar trend. From January to September, Hyundai's global sales totaled 2,886,763 units, a 7.0% decline from the previous year, while Kia's sales increased by 4.4% to 2,478,144 units. The gap between the two companies has shrunk by over 44% in just one year.
Market analysts are closely watching whether Kia will surpass Hyundai in annual domestic sales this year. If the current trend continues through the end of the year, Kia could become the top seller for the first time since 1998. The key will be the fourth quarter, as Hyundai has recently concluded wage negotiations and is expected to normalize production, which could impact sales and the introduction of new models.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.