Hyundai Motor Banking on Local Market to Counter Poor Exports

Hyundai Motor Group is seeking to boost domestic sales by increasing the production of its Grandeur, Palisade, GV80, and G80.

The move is meant to counter the impact of weakened exports.

Consequently, Hyundai Motor Group needs to reorganize the production schedule, increase production volume, and control the amount for export.

Other smaller automakers are also leaning on domestic sales to tide them over.

Kia Motors also plans to manufacture more of its popular models, namely the Sorento, Mohave, K5, and K7.

Hyundai Motor’s sales shrank by at least 40 percent in March as overseas sales plummeted in North America and Europe.

Losses are expected to continue in April.

But the situation in the local market has been slightly better.
Data from the Ministry of Trade, Industry and Energy revealed that domestic sales of automobiles in March went up by 10.1 percent on-year to 172,956 units.

The robust sales were attributed to stable consumer sentiment and the 70 percent exemption on consumption tax for vehicles.

GM Korea, Renault Samsung Motors, and SsangYong Motors also hope to sell more domestically.

But due to the limited local growth potential, carmakers are expected to lose market share to Hyundai Motor and its sister company Kia Motors.

As of 2019, the combined sales of Hyundai Motor and Kia Motors accounted for 70.6 percent of the local market.

SsangYong Motors was the only carmaker among the five to record negative growth in March due to fierce competition in SUVs and a lack of backing from its parent company, Mahindra & Mahindra.