South Korea Auto Sales Fall 20% in September
Domestic auto sales in South Korea dropped 20% in September 2024, with Hyundai, Kia, and Renault Korea all reporting significant declines.
South Korea's domestic auto sales fell 20% in September 2024 compared to the same month last year. The overall volume of 99,843 units represents a 16.7% decline from the 124,515 units sold domestically in September 2023.
Hyundai Motor's domestic sales fell 25.7% from September last year. The company sold 49,022 vehicles in the domestic market last month. Hyundai's overseas sales also decreased, falling 13.9% to 258,976 units. The company cited the depletion of electric vehicle subsidies as a primary cause of the domestic slowdown.
Kia's domestic sales fell 6.7% from September last year. It sold 45,705 vehicles domestically in September. In contrast, Kia's overseas sales rose 5.1% to 235,457 units.
Company Performance
Renault Korea's domestic sales fell 45.3% from September last year. It sold 2,289 units domestically in September. GM Korea sold 727 units domestically, a 40.9% decline from a year earlier. KGM sold 2,100 units domestically, a 48.8% plunge from 4,100 units a year earlier.
Across domestic and international markets, KGM sold a total of 8,863 vehicles in September. GM Korea sold 40,374 units overseas, contributing to a 73.3% increase in its global sales from a year earlier.
Export Markets
Export sales showed a different trend, with some companies experiencing increases. KGM sold 6,763 units overseas in September, a 3.5% increase from 6,536 units a year earlier. Electric vehicle models showed particularly strong momentum in the company's export markets.
The performance of individual KGM models in export markets varied significantly below.
| Model | Export Units | Year-over-Year Change |
|---|---|---|
| Torres EVX | 1,930 | +48.1% |
| Musso EV | 1,117 | +70.8% |
| Musso | 1,597 | +17.4% |
| Tivoli | 392 | +3.2% |
| Korando | 512 | -44.0% |
| Torres | 610 | -15.6% |
| Actyon | 264 | -68.2% |
| Rexton | 281 | -24.1% |
Company Strategy
Companies are responding to the decline in domestic sales by strengthening their emerging-market strategy and offering financing and purchase incentives. KGM launched a KD, or semi-knocked-down parts export, operation in Ethiopia in September. It had entered Myanmar in August.
A KGM official said the company plans to increase volume by strengthening its emerging-market strategy including KD operations, while also bolstering its domestic market response through various financing and purchase incentives. The company aims to broaden customer engagement through sponsorships such as the official partnership with the 2026 Run Seoul Run marathon. Hyundai's new Tucson model was scheduled for release later in October 2024.
KGM plans to increase volume by strengthening its emerging-market strategy.
