South Korean sales fall 8% in December | Automotive Industry News

With new social measures introduced in December to handle the COVID-19 pandemic and new variants of the virus rising globally, customer sentiment in South Korea turned more detrimental in December

Domestic sales by the five major South Korean automakers merged declined by 8.1% to 133,061 units in December 2020 from one hundred forty four,839 in the same thirty day period of the former 12 months, according to preliminary knowledge produced separately by the businesses.

The knowledge did not involve sales by the minimal volume industrial auto manufacturers, including Tata-Daewoo and Daewoo Bus Corporation, as very well as sales of imported motor vehicles which will be covered in a independent report when the knowledge is produced later on in the thirty day period. Alongside one another these account for close to fourteen% of overall auto sales in the place.

The South Korea domestic auto sector benefited from a strong pipeline of new designs by the top brands last 12 months and also from a thirty% sales tax discount introduced in June till the close of the 12 months. With new social measures introduced in December to handle the COVID-19 pandemic and new variants of the virus rising globally, customer sentiment in the place had turned more detrimental.

Hyundai Motor ongoing to underpin the sector in December, with sales climbing by about 3% to 68,486 units, when sister firm Kia Motors documented an almost 21% drop to 38,857 units. GM Korea savored a five% sales rise to nine,259 units while Ssangyong and Renault Samsung both of those observed their sales plunge by shut to 20% to 8,449 and 8,010 units respectively.

Total domestic auto sales by the five major automakers in 2020 enhanced by four.nine% to 1,607,034 units from 1,531,453 in 2019, with the sector acquiring totally recovered from the sharp very first quarter drop triggered by the COVID-19 pandemic.

Global sales by the significant five automakers, including motor vehicles manufactured abroad by Hyundai and Kia, fell by four.7% to 658,520 units in December from 690,721 a 12 months before – reflecting decreased abroad sales. Total volume last 12 months fell by about twelve% to 6,937,907 units from 7,923,449 in 2019.

Overseas sales, including exports and motor vehicles manufactured abroad by Hyundai and Kia, fell by four.five% to 525,459 units in December from 550,149 a 12 months before, with recovering demand in important markets this sort of as China and India offset by rising weak spot elsewhere. Overseas sales last 12 months declined by almost 17% to five,329,753 units from 6,396,065 in the same interval of last 12 months.

Hyundai Motor‘s international sales fell by 6.four% to 373,970 motor vehicles in December from 399,543 a 12 months before, reflecting sharply decreased abroad sales. Total sales last 12 months were being down by about fifteen% at 3,743,514 units from four,425,528 formerly. The company’s international sales focus on for 2021 has been established at four.16m units, an eleven% boost on last 12 months, comprising 741,500 domestic sales and 3.42m abroad sales. 

Domestic sales ongoing to expand last thirty day period, by about 3% to 68,486 units from sixty six,335 a 12 months before, despite climbing COVID-19 infections in the place top to the introduction of harder social distancing regulations. The company’s nearby sales last 12 months were being up by 6.2% at 787,854 units from 741,842 in 2019.

Deliveries ongoing to rise on strong demand for new SUV designs this sort of as the Palisade and Tucson and the lately released Avante compact sedan.

The firm also reported new Genesis designs this sort of as the G80 sedan and GV80 SUV ongoing to carry out strongly. 

Overseas sales fell by 8.3% to 305,484 units in December from 333,118 a 12 months earlier with renewed lockdowns in a rising quantity of abroad markets more than offsetting recovering demand elsewhere. Overseas sales last 12 months were being down by almost 20% to 2,955,660 units from 3,683,686 units in 2019.

Kia Motors‘ international sales rose by just about 2% to 218,256 motor vehicles in December 2020 from 226,829 units a 12 months before, reflecting sharply decreased domestic sales. Total sales last 12 months were being down by almost 6% at 2,607,337 units from 2,772,076 units in 2019.

Domestic sales plunged by almost 21% to 38,857 units last thirty day period from forty nine,one hundred thirty a 12 months before, with demand affected by measures to handle the spread of the COVID-19 pandemic and latest industrial motion. Whole 12 months domestic sales were being nevertheless up by 6.2% at 552,400 from 520,205, driven by strong demand for the Sportage, the lately revised Seltos and the recently released Carnival. New designs released in the fourth quarter involve the Sorento SUV and K5 midsize sedan.

Overseas sales enhanced by much less than 1% to 179,399 units in December from 177,699 a 12 months before, with SUV designs this sort of as the Sportage and Seltos helping to offset weak demand in numerous export markets. Revenue in important markets this sort of as China are also commencing to get well. Overseas sales last 12 months were being down by about nine% at 2,054,937 units from 2,251,871 formerly. 

GM Korea‘s international sales jumped by about 20% to 46,717 motor vehicles in December 2020 from 38,818 units a 12 months earlier as both of those domestic and abroad sales rebounded pursuing industrial motion in the former thirty day period. Whole 12 months sales were being nevertheless down by almost twelve% at 368,453 units from 417,226 in 2019.
Domestic sales rose by five% to nine,259 units last thirty day period from 8,820 a 12 months before and were being 8.five% higher at eighty two,954 units about the full 12 months in comparison with 76,471 in 2019 – reflecting higher demand for the Spark mini car and the Trailblazer and Traverse SUVs.

Exports jumped by almost 25% to 37,458 units in December from 29,998 units a 12 months before but were being nevertheless down by about sixteen% at 285,499 units in 2020 from 340,755 in the former 12 months. 

Ssangyong Motor documented a more than 18% fall in international sales to ten,561 units in December 2020 from twelve,923 a 12 months before, reflecting sharply decreased domestic sales and exports. Global sales last 12 months fell by about 19% to 107,324 units from 132,799 in 2019. 

The firm was declared bankrupt on 21 December following it unsuccessful to satisfy its personal debt compensation obligations and this has damage customer confidence in the model. Output was disrupted late in the thirty day period following suppliers refused to supply parts. 

Domestic sales plunged by 20% to 8,449 units last thirty day period from ten,574 units a 12 months before and were being down by about 18% at 87,888 units in 2020 from 107,789 formerly. Exports fell by ten% to 2,112 units in December from 2,349 a 12 months before and by 23% to 21,137 units about the full 12 months from 27,446 in 2019.

Mahindra & Mahrindra has stated for some time it does not intend to invest additional in the South Korean SUV maker and has been actively seeking for a new strategic trader for more a 12 months. News last week emerged it had held talks with an unnamed opportunity trader to promote a controlling stake, with a offer scheduled be finalised at the close of February. 

Renault-Samsung, eighty one%-owned by France’s Renault, observed its international sales plunge by almost forty seven% to nine,016 motor vehicles in December 2020 from sixteen,965 units in the same thirty day period of last 12 months, reflecting falling domestic sales and exports. Global sales last 12 months were being down by 35% at 116,166 units from 178,698 in 2019.

Domestic sales declined by almost 20% to 8,010 units last thirty day period from nine,980 a 12 months before despite the latest start of the new XM3 SUV and the upgraded QM6 model, reflecting climbing opposition from top domestic brands this sort of as Hyundai and Kia. Neighborhood sales were being nevertheless up by just about ten% at 95,939 units 12 months to day from 86,859 formerly. 

Exports plunged by almost 86% to 1,006 in December from 6,985 a 12 months before, reflecting the discontinuation of export orders for the Rogue SUV from Nissan Motor. Total exports in 2020 were being down by shut to seventy eight% at 20,031 units from ninety,057 in 2019.