The traditional slow month of August, coupled with labor strike, saw domestic automakers’ domestic sales sharply drop.
According to Hyundai Motor on August 1, their domestic sales slid 17.6% to 42,112 units from a year before. In particular, Hyundai Motor inked drops in sales of all kinds of passenger cars. Sales of the Genesis, a luxury model, decreased 22% from the previous month.
Sales of Kia Motors declined 10.4% year on year due to shrunken production caused by a labor strike and a drop in demand triggered by the end of a cut in individual consumption tax and an off-season when people make holiday. Even though some models such as the K7 and the Carnival put up a good fight, most of the passenger cars and RVs chalked up drops of 5 to 55% compared to the same period of last year.
Last month, GM Korea’s domestic sales dwindled 8% year on year, too. The drop was impacted by a sale cliff sparked off the end of an exercise tax cut and a labor dispute. GM Korea announced on September 1 that the automaker sold a total of 35,971 units (domestic sales: 12,773 units / exports: 23,198) in August. Last month, its domestic sales dropped by nearly 1,000 units from a year before. “Although, traditionally, August is a slow season, a labor dispute over wage negotiations impeded production and sales,” GM Korea said.
At that, the Spark, a compact car, put up a good fight. The Spark sold 5,850 units last month. The model sold over 5,000 units for seven consecutive months from the start of this year.
Ssangyong Motor which finished a collective bargaining agreement for seven years in a row enjoyed a 2.1% increase in domestic sales. “While the Tivoli steadily put up a good fight, cooperation between the labor and management enabled the automaker are slowly getting out of the effects of a drop in sales ignited by the end of an exercise tax cut. Even increases in sales all models drove up Renault Samsung Motors’ sales by 24.4% year on year.
Coupled with an 95.2% increase in exports, total sales soared 51.5%.