Domestic Auto Industry Faces Sluggish Domestic Demand… Turns to Exports for Growth
The domestic automobile industry faced a significant blow to local sales last year due to the economic downturn and high-interest rates. However, increased export volumes helped mitigate the impact on overall performance. According to the automobile industry on January 5, Hyundai Motor and Kia Motors failed to meet their combined sales target of 7.44 million units last year, largely due to the sluggish domestic market. Meanwhile, Korea GM (GM Korea) and KG Mobility (formerly SsangYong Motor) experienced their worst domestic sales performances. On the other hand, Renault Korea Motors maintained a positive trajectory, buoyed by the success of new model launches. Last year, Hyundai Motor sold 705,000 units domestically, a 7.5% decline compared to the previous year, while Kia managed 540,000 units, down 4.2%. However, both Hyundai and Kia successfully offset the domestic downturn by leveraging strong export growth to stabilize their overall sales volumes. Notably, Kia achieved its highest-ever global sales record last year, selling 3,089,457 units. The decline in domestic sales was offset by overseas sales, which reached 2,543,361 units—a 1% increase compared to 2023. For this year, Kia has set a global sales target of 3,216,000 units, representing a 4.2% growth compared to last year’s performance. Hyundai Motor and Kia are focusing on penetrating global markets to overcome challenges. They are targeting the North American eco-friendly vehicle market by ramping up operations at their Georgia plant, while also expanding sales in emerging markets through localization strategies in India and Indonesia. Hyundai plans to launch the large electric SUV Ioniq 9 in the U.S. this year. Kia, meanwhile, aims to drive innovation in the automotive industry with its purpose-built vehicle (PBV) PV5 and expand its presence in emerging markets. The company is set to introduce the compact SUV Siroce and the pickup truck Tasman, targeting markets in India, the Asia-Pacific region, Latin America, and Africa. Mid-sized domestic automakers experienced mixed fortunes in domestic and export markets. Notably, Korea GM (GM Korea) and KG Mobility (formerly SsangYong Motor) recorded their worst domestic sales figures. Korea GM sold 24,824 units, a decline of approximately 35% year-over-year, while KG Mobility sold 47,000 units, a 25.7% drop. Korea GM's domestic sales last year were its lowest since 1982, when it sold 22,184 units. However, both Korea GM and KG Mobility saw notable increases in export volumes. Korea GM recorded 474,735 units in overseas sales, a 10.6% year-over-year increase, marking its highest export figure since 2014. KG Mobility achieved a significant 18.2% rise in exports, with 62,378 units sold abroad. KG Mobility aims to boost both domestic and export sales in 2025 with the launch of new models such as the Torres Hybrid and O100. These initiatives highlight the company's strategy to strengthen its market presence globally and locally. In contrast, Renault Korea Motors, which had struggled with declining sales for an extended period, experienced a resurgence thanks to the popularity of its first new model in four years, the Grand Koleos. Renault Korea achieved a total of 106,939 units sold last year, comprising 39,816 units domestically and 67,123 units for export. Notably, its annual domestic sales rose by an impressive 80.6% year-over-year. Buoyed by the success of its new model, Renault Korea aims to maintain its upward momentum through additional launches. Domestically, the company will focus on boosting Grand Koleos sales, while expanding export volumes with the Arkana. The Grand Koleos is also expected to make significant contributions to export performance. Additionally, Renault Korea plans to strengthen its presence in the domestic electric vehicle market by introducing the compact electric SUV Renault Scenic E-Tech next year, targeting environmentally conscious consumers. An official from the automobile industry stated, "Last year, the domestic market faced significant challenges due to the economic downturn caused by high interest rates and inflation." They added, "This year, the focus will be on increasing sales volumes by addressing the sluggish domestic market while also intensifying localization strategies to penetrate emerging markets, including the U.S." ChatGPT를 사용하여 번역한 기사입니다.
