Domestic sales by South Korea’s five main automakers combined fell by over 6% to 123,616 units in November 2024 from 132,021 year earlier, according to preliminary data released individually by the manufacturers. The data does not include sales by South Korea’s low-volume commercial vehicle manufacturers such as Tata-Daewoo and Edison Motors, while import brands are covered in a separate report later in the month.
After showing signs of stabilising in the previous few months, the market resumed its downward trajectory in November – reflecting sluggish demand from the country’s heavily indebted consumers. The central bank surprised markets by cutting its benchmark interest rate by 25 basis points for the second consecutive month at its November meeting, to 3.0%, to help drive up private consumption. This came after GDP growth slowed to 1.5% year-on-year in the third quarter from 2.3% in the second quarter. Local automakers have begun to step up their promotional campaigns in order to meet their full-year targets.
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In the first eleven months of the year domestic vehicle sales fell by over 7% to 1,243,400 units from 1,338,243 units a year earlier, with most major brands reporting declines. Hyundai Motor said its domestic deliveries fell by 8% to 643,687 year-to-date (YTD) from 699,905 units, while Kia’s volumes declined by 5% to 493,940 units. GM Korea reported the sharpest drop, of 37% to 23,023 units, followed by KG Mobility with a 26% fall to 44,506 units. Renault Korea was the only company to report a sales increase in this period, of 37% to 32,738 units, helped by the recent launch of the new Grand Koleos SUV.
Global sales by the country’s “big-five” automakers, including vehicles produced overseas by Hyundai and Kia, fell by just 1% to 7,293,787 units in the first eleven months of the year from 7,369,703 in the same period of 2023, supported by a slight increase in overseas sales to 6,050,387 from 6,029,225 units.
Hyundai Motor’s global sales fell by almost 4% to 355,729 units in November from 369,356 a year earlier, reflecting a sharp decline in domestic sales and a slight drop in overseas deliveries. The company also reported 16,500 battery electric vehicle (BEV) sales globally last month, down sharply from the 20,000 units sold in October. Total volumes in the first eleven months of 2024 fell by 1.7% to 3,809,424 units from 3,873,724 previously.
Domestic sales dropped by 12% to 63,170 units in November from 72,058 a year earlier, including 10,951 Genesis-branded vehicles and 52,219 Hyundais – of which 22,978 were SUVs. Cumulative eleven-month sales were down by 8% at 643,687 from 699,905 units. Hyundai began deliveries of its new Casper A-segment BEV in August and plans to introduce the Ioniq 3 and Ioniq 7 BEVs before the end of the year, followed by the Ioniq 9 in 2025.
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By GlobalDataOverseas sales fell by 2% to 292,559 units in November from 297,298 a year earlier, while YTD volumes were slightly lower at 3,165,737 units from 3,173,819 units, supported by strong demand in North America and in India earlier in the year. The company’s new EV plant in the US state of Georgia became partially operational in October, producing the Ioniq 5, with output expected to be ramped next year with the introduction of new Hyundai and Kia models including the Ioniq 9.
In September Hyundai reduced its medium-term global sales forecast, by 6% to 5.5 million vehicles by 2030, to reflect the slower than expected growth in the global BEV segment and rising competition from Chinese automakers in key global markets. The company confirmed it will continue to “improve its regional product mix, optimize production and enhance its product mix with more SUVs and luxury models”. In view of sluggish global demand for BEVs, it plans to increase its focus on the hybrid vehicle segment – which continues to grow strongly.
Kia’s global sales increased slightly to 262,426 units in November from 260,363 a year earlier, with weak domestic sales more than offset by slightly stronger overseas deliveries. The Sportage SUV remained the brand’s best-selling model globally last month with 46,104 deliveries, reflecting strong overseas demand, followed by the Seltos with 24,312 sales and the Sorento with 23,906 units. Global sales in the first eleven months of the year were down by 1% at 2,847,160 units from 2,872,228 units.
Domestic sales fell by 4% to 48,015 units last month from 50,022 a year earlier, with the Sorento, Seltos and Carnival its best-selling models, while YTD volumes were down by 5% at 493,940 from 518,857 units. The company reported a further 5,506 special-purpose vehicle (SPV) sales in this period, including military and municipal trucks, which were mostly sold locally.
Overseas sales increased by 2% to 213,835 units in November from 209,759 a year earlier, while cumulative eleven-month volumes were marginally lower at 2,347,714 units from 2,348,258 – with the Sportage and Seltos SUVs and the K3 sedan its best-selling overseas models.
Kia released the revamped K5 mid-sized sedan at the beginning of November and plans to launch the all-new Sportage and begin sales in Europe of its all-electric EV3 before the end of the year. Key new model launches scheduled for the first half of next year include the new battery-powered EV4, the K4 sedan and the Tasman pickup truck.
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Earlier this year Kia said it aimed to sell 3.2 million vehicles globally in 2024, including 530,000 domestically, 2,663,000 overseas and a further 7,000 SPVs globally. The company’s medium-term plan is to sell 4.3 million vehicles annually by 2030, including 1.6 million BEVs.
GM Korea’sglobal sales increased by over 5% to 49,626 vehicles in November from 47,104 a year earlier, resulting in a 7% rise to 446,234 units in the first eleven months of the year were from 416,642 – reflecting strong growth in the first half of the year. Sales in the third quarter were affected by a series of partial strikes, before full production resumed in early October after a wage agreement was reached with the company’s labour union.
Local sales continued to fall sharply last month, by 40% to 1,821 units from 3,016 units a year earlier, while cumulative eleven-month volumes were down by 37% at 23,023 units from 36,541 units – reflecting strong competition from Hyundai-Kia and from imports, as well as the recent production stoppages. The company said it has stepped up its year-end sales promotions, including interest-free loans, to help lift its full-year sales.
GM Korea produces two main models, the Trax Crossover and the Trailblazer SUV, and imports the Colorado pickup truck, Equinox, Traverse and Tahoe SUVs, as well as the GMC Denali pickup truck.
Exports increased by over 8% to 47,805 units in November from 44,088 a year earlier and were up by 11% at 423,211 units YTD from 380,151 – reflecting strong overseas deliveries of the Trax Crossover vehicle in the first half of the year.
KG Mobility (KGM) reported a26% rebound in global sales to 8,849 vehicles in November from weak year-earlier sales of 7,000 units, reflecting sharply higher overseas sales. Total volumes in the first eleven months of the year were down by 10% at 98,677 from 109,640 units. The company, previously known as Ssangyong Motor, was acquired in late 2022 by a consortium led by local steel and chemicals firm KG Group.
Domestic sales plunged by over 34% to 3,309 vehicles last month from 5,050 units a year earlier, despite the recent launch of the new Actyon SUV and a new minivan version of the Torres EVX SUV. Cumulative eleven-month volumes were still down by 26% at 44,506 from 59,838 units, reflecting weak overall domestic demand and strong competition from other domestic manufacturers and importers.
Exports surged almost threefold to 5,540 units in November from a depressed 1,950 units a year earlier, with the company reporting an increase in shipments to Turkey, Chile and Hungary. Total exports in the first eleven months of the year were up by over 8% at 54,171 units from 49,982 previously.
Last month KGM announced it had signed a strategic partnership China’s Chery Automobile Company, involving platform licensing and product sharing aimed at helping it strengthen its SUV line-up. The deal will also give KGM access to readily available new energy vehicle (NEV) technologies including vehicle platforms.
Renault Korea‘s global sales surged more than threefold to 15,180 vehicles in November from very weak 4,523 sales a year earlier, reflecting a strong rebound in domestic deliveries and overseas shipments. Total sales in the first eleven months of the year were still down by 5% at 92,292 units from 97,469 units, however.
Domestic sales surged almost fourfold to 7,301 vehicles last month from 1,875 units a year earlier, following the recent launch of the new Geely-based Grand Koleos hybrid SUV, while YTD sales were up by 37% at 32,738 units from 23,102. The company also launched a gasoline version of the Grand Koleos in October.
Exports rebounded threefold to 7,879 units in November from 2,648 units a year earlier, mostly comprising shipments of the Arkana hybrid crossover vehicle (a rebadged XM3), while YTD exports were still down by almost 23% at 59,554 units from 77,015 units.
Earlier this year Renault Korea confirmed it will continue to overhaul its product range with a strong focus on SUVs, BEVs and hybrid vehicles, starting with the new Geely-based Grand Koleos hybrid SUV in July and the phasing out its aging SM6 mid-size sedan this year. The company recently agreed with Geely to produce the Polestar 4 BEV at its Busan plant from the second half of 2025, for sale domestically and for export.
