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Customer LoginsSouth Korean new vehicle sales decline 9.9% y/y during October, YTD sales up 0.5% y/y
New vehicle sales in South Korea declined for a fourth consecutive month in October, mainly due to the industrial action at Hyundai and Kia and the phasing out of special consumption tax relief.
IHS Markit Perspective
- Significance: New vehicle sales in South Korea declined 9.9% year on year (y/y) to 147,272 units during October.
- Implications: The decline in sales last month was primarily due to strike action at Hyundai and Kia, as well as the expiry of tax incentives on vehicles. Meanwhile, imported vehicle sales returned to positive territory during October, mainly on the back of strong sales promotions and new model launches.
New vehicle sales in South Korea fell 9.9% year on year (y/y) during October to 147,272 units, down from 163,529 units in October 2015, according to a report by the Yonhap News Agency and data compiled by IHS Automotive. The tally for October 2016 included imports of 20,612 units. For the year to date (YTD; January−October), total vehicle sales stood at 1.46 million units, up just 0.5% y/y.
Hyundai and Kia maintained their lead of the South Korean vehicle market in October, although their combined share shrank to 59.2%. Although this was largely attributable to the strike action and production stoppages during the month, the fall below the symbolic 60% mark is a concern for the automakers; this is the first time since the South Korean market was opened up to exports that their combined share has dipped below 60%. Hyundai posted a decline of 30.4% y/y in monthly sales to 47,186 units, while affiliate Kia recorded a fall of 14.1% y/y to 40,034 units. The third-largest domestic automaker, General Motors (GM) Korea, registered a 14.0% y/y increase to 16,736 units. Renault Samsung meanwhile recorded an 89.0% y/y surge to 13,254 units, mainly thanks to strong sales of the SM6 sedan and QM6 sport utility vehicle (SUV). SsangYong's sales went down by 5.6% y/y to 9,450 units.
For the YTD, Hyundai's sales are down 6.5% y/y at 529,849 units, while Kia's sales are up 2.9% y/y at 436,494 units. GM Korea has posted a 12.5% y/y rise to 144,726 units. With a 36.8% y/y gain to 84,458 units, Renault Samsung is ahead of SsangYong, which has registered a 5.2% y/y increase to 83,379 units.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.