Sharp Drop in August Domestic Sales for Big Five Automakers... Only Kia and GM Korea Sustain Growth with Overseas Sales

Global Sales: Hyundai Down 14.2%, Kia Up 5%

Hyundai's Domestic Sales Plunge 41.1% Amid Strike Impact

Kia and GM Korea Operations Boost Exports

In August, the sales of the five major domestic automakers shrank significantly, impacted by weak domestic demand and production disruptions. All five companies saw a decrease in domestic sales compared to the same month last year, while, in overseas markets, only Kia and GM Korea operations posted sales growth. Hyundai Motor Company experienced a double-digit decline in global sales due to the additional effects of a labor union strike, and both Renault Korea and KG Mobility (KGM) also performed poorly in both the domestic and export markets.

According to industry data released on September 1, the combined domestic sales of Hyundai Motor Company, Kia, GM Korea operations, Renault Korea, and KGM in August totaled 79,601 units, a 28.3% decrease compared to the same period last year. Overseas sales amounted to 508,702 units, down by 1.2%. Factors such as a reduced number of working days due to summer vacations, a slump in consumer demand, and production disruptions resulting from union strikes contributed to the decline in domestic sales.

On the 12th, export cars were parked at Pyeongtaek Port in Pyeongtaek City, Gyeonggi Province. Photo by Yonhap News Agency

The sluggish performance of Hyundai Motor Company was particularly pronounced. In August, Hyundai sold 34,333 units in Korea and 254,241 units overseas, totaling 288,574 units. This marks a 14.2% decrease compared to the same month last year. Domestic sales plummeted by 41.1%, and overseas sales fell by 8.5%. The company explained that production disruptions caused by strikes, as well as deferred demand for new models, were key factors behind the decline in performance.

Kia, on the other hand, achieved a turnaround in overseas markets. In August, Kia sold 40,213 units domestically, 225,413 units overseas, and 1,049 special vehicles, totaling 266,675 units—an increase of 5.0% year-on-year. While domestic sales dropped by 7.6%, overseas sales rose by 7.4%, driving global sales growth. Sales of the Sportage totaled 46,239 units globally, Seltos reached 35,698 units, and Sorento accounted for 18,404 units, leading the company’s performance.

GM Korea operations also grew, driven by increased exports. In August, total sales reached 23,042 units, up 9.4% year-on-year. Domestic sales were 731 units, marking a 39.4% decrease, but exports increased by 12.4% to 22,311 units. In particular, overseas sales of the Chevrolet Trax Crossover surged to 18,223 units—a 16.1% increase—driving overall results.

In contrast, Renault Korea sold a total of 4,261 units in August—including 2,024 units domestically and 2,237 units for export—reflecting a 34.0% decline compared to the previous year. Domestic sales dropped by 47.7%, while exports fell by 13.6%. Among the domestic sales, the Grand Koleos sold 929 units and Arkana sold 575 units. For exports, the Polestar 4 was the top model at 1,232 units.

KGM sold a total of 6,860 vehicles in August, with 2,300 units sold domestically and 4,560 units exported, representing a 22.6% decline year-on-year. Domestic sales dropped by 43.3%, while exports maintained strong momentum, particularly in markets such as Türkiye and Hungary.

By company, stagnation in the domestic market was a common theme in August. In particular, Hyundai Motor Company, Renault Korea, and KGM suffered declines in both domestic and overseas sales, worsening overall performance. In contrast, Kia and GM Korea operations offset declines in domestic sales with export growth of 7.4% and 12.4%, respectively, thereby helping defend against a global sales downturn.

Whether domestic automakers can recover in the second half of the year will depend on export competitiveness, as well as normalization of production and the impact of new models. For Hyundai, having concluded wage negotiations and completed labor-management talks, the key task is to restore sales through normalization of production. Kia and GM Korea operations plan to focus on expanding overseas sales with flagship models such as hybrids and electric vehicles, as well as the Trax, respectively.

This content was produced with the assistance of AI translation services.