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Hyundai Motor May See Its Domestic Market Fall Below 30%
Shrinking Market Share
Hyundai Motor May See Its Domestic Market Fall Below 30%
  • By Jung Min-hee
  • February 9, 2017, 09:30
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Hyundai Motor has been suffering a decline in its domestic market share.
Hyundai Motor has been suffering a decline in its domestic market share.

 

Hyundai Motor, which suffered from sluggish demand at home last year, tried to reverse the situation with a new Grandeur. But since even the beginning of this year, the automaker has suffered a decline in its domestic market share. Analysis says that if this holds, the automaker will fail to maintain a 30% share in the Korean market for the first time.

According to the Korea Automobile Manufacturers Association (KAMA) and the Korea Automobile Importers Association (KAIDA) on February 8, Hyundai sold 30,153 units in the Korean passenger car market last month, accounting for 30.45 % of the market. Hyundai and Kia's market share also fell under the 60% level by posting a market share of 59.33% at the beginning of this year due to Hyundai’s sluggish performances.

In 2009, Hyundai and Kia enjoyed a dominant domestic market share of 74%. However due to the rapid growth of the imported car market, the share fell to 60% in 2013 for the first time and has been trending downward for the fourth consecutive year. The two automakers were satisfied with their combined market share of 61.17% last year, which means that their market share did not fell below the 60% level.

In particular, Hyundai and Kia's market share dwindled in spite of the contraction of the imported car market kindled by the Volkswagen scandal where the German automobile giant rigged emission reduction devices and smirched its reputation last year as three domestic automakers -- GM, Renault Samsung, and Ssangyong Motors stole the show.

Renault Samsung Motors, which had only a 2% market share in the beginning of last year, has driven up its market to more than 8% at the end of the year through the launch of the new model SM6, and Korea GM and Ssangyong Motors both recorded their highest sales ever in the Korean market with the Malibu and the Tivoli.

This trend has not changed this year. The three Korean automakers recorded double-digit sales growth despite tough conditions such as a decrease in the number of work days due to New Year's holidays in January and the end of the Korea Sales Festa. On the other hand, Hyundai and Kia posted sales drops of 9.5% and 9.1%, respectively, compared to the same period of the previous year.

In January, Mercedes-Benz Korea sold an average of 7,000 vehicles a month, a rare feat as a foreign carmaker, chasing Korean car makers. It is forecast that if Audi Volkswagen Korea, which began its first recall this month, resumes its sales on a full scale within this year, Hyundai will have hard time maintaining its 30% market share and Hyundai and Kia their combine market share of 60%.