Hyundai Sets 2030 Domestic Sales Target at 730,000 Units... "Peak Out" Becomes Reality

Increase of Only 15,000 Units Over 2025

Share of Domestic Sales Drops from 17% to 13%

Concerns Over Job Losses and Regional Economic Impact

Global Sales Target Set to Rise by 35%

As Hyundai Motor Company forecasts that its domestic sales will increase by only 15,000 units over the next four years compared to last year, concerns are being raised that the so-called "peak out" of the domestic automotive market is becoming a reality. Domestic sales have already reached their highest point, and experts anticipate a gradual decline with little expectation of another boom period in the near future.

Experts warn that finished car manufacturers will become increasingly dependent on overseas markets through local production plants, and that domestic manufacturing facilities may face a crisis, needing to either expand their export share or transition to other sectors.

According to industry sources on September 15, Hyundai Motor's global sales target for 2030 is 5.55 million units. This is an expected increase of 1.45 million units from the 4.1 million units projected for 2025, representing a remarkable 35% growth rate over five years. The company aims to boost sales in major markets, including China, the world’s largest electric vehicle market (370,000 units), India (290,000 units), North America (230,000 units), and Europe (225,000 units).

In contrast, Hyundai predicts that domestic sales will increase by only 15,000 units compared to 2025. The share of domestic sales in total sales is also expected to fall from 17% in 2025 to 13% in 2030.

Based on last year’s figures, Hyundai Motor's domestic sales stood at 712,959 units, and the company’s sales for 2030 are projected to remain around 730,000 units. Given that average domestic sales have hovered around 730,000 units annually from 2020 to last year, this means domestic sales are likely to stagnate going forward.

All five major domestic carmakers, including Hyundai Motor, have recently faced sluggish sales in the Korean market. From January to July of this year, total domestic sales reached 771,957 units, a 2.86% decrease compared to the same period last year. The combined sales of the five companies peaked at 1.61 million units in 2020 and have since been gradually declining. Hyundai Motor’s sales alone have dropped by almost 9% compared to 2020, while the three midsize carmakers (GM Korea, KG Mobility, and Renault Korea Motors) have also experienced significant declines over the same period.

As a result, domestic carmakers have little choice but to focus their sales strategies on overseas markets that offer higher growth potential, further exacerbating the stagnation of the domestic industry and raising concerns that the automotive sector may remain stuck in a “recession cycle.”

The reasons for this stagnation are, first of all, environmental factors such as demographic changes—including a decrease in the number of driver’s license holders due to an aging population. In addition, the aggressive incursion of imported vehicles is also cited as a factor. High-priced imported premium brands are intensifying efforts to expand their market share, targeting domestic income growth, while sales of competitively priced Chinese electric vehicles, such as Tesla, have surged recently.

Declining domestic sales could lead to negative side effects, such as reduced employment at domestic production facilities and deterioration of local economies. Some have pointed out the need for proactive restructuring, as seen with Germany's Volkswagen, which converted its automotive plants into defense production facilities.

Hangoo Lee, distinguished professor at Namseoul University and former president of the Korea Automotive Technology Institute, stated, "The automotive employment market, which once stood at 60,000 jobs, has now decreased to 30,000, and even this number is on shaky ground. If the expansion of overseas production and the adoption of robotics continue, not only the finished carmakers but also local partners will inevitably collapse." He added, "Just as Europe is transitioning its workforce from automotive to defense or renewable energy sectors, proactive restructuring is needed in Korea as well."

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