The car that sells the most in Korea is Hyundai. The total number of cars sold from January to November of this year was 602,565 units, accounting for 41.5% of the total. Kia Motors sold 512,784 and Genesis 9,069, respectively, ranking second and third, respectively, but as it is a subsidiary of the same Hyundai Motor Group, it is actually counted as Hyundai’s performance. The combined share of these three is 83.4%, which can be seen as the majority of domestic car sales.
Conversely, the remaining Renault Samsung, Ssangyong Motor, and Chevrolet have a combined market share of less than 20%. Even the premium brand, Genesis, was at the bottom of sales until the beginning of this year, but now it is selling more than Renault Samsung, Ssangyong and Chevrolet. Today’s AutoPost Issue Plus takes a step further into the concentration of Hyundai Motors sales volume.
Written Jinwoong Lee Editor
Top 10 in domestic car sales
There are no Renault Samsung, Ssangyong, and Chevrolet
If you look at the sales of domestic cars from January to November this year, it is truly a heaven for Hyundai Motor Group. The first place was Grandeur, with an overwhelming record of 135,000,109 units. The second place was Porter 2, with 87,932 units. In third place, the K5 returned after sharpening a knife, recording 74,497 units.
The fourth place was Sorento, which had been treated as a bastard for a long time, just like the K5, with a record of 71,499 units, relieving the sadness. The fifth place was Avante, with 69,819 units, taking off the stigma of the triangular group. The 6th place was Bongo 3, which sold 58,909 units. Seventh place was Palisade, which sold 58,822 units. Production is still being pushed back.
In 8th place, Seltos sold 47,165 units, keeping the first place in small SUVs. In ninth place, the G80 sold 46,525 units. This is the first time that a car with more than 50 million won was ranked in the top 10. The 10th place was the Sonata, which sold 45,120 units, barely keeping the 10th place.
Renault Samsung, Ssangyong and Chevrolet are not in the top 10. Renault Samsung’s QM6 sold the most, with 38,411 units. Ssangyong’s most-selling car was the Rexton Sport, which ranked 17th with a total of 3,679 units in the base model and the car. However, the sales volume of each of the base model and Kahn is lower than that of Tivoli (18,974 units). Chevrolet’s best-selling car was the Spark, with 25,602 units, ranking 21st.
Commercial vehicle market map
The situation is the same
The situation is the same in the commercial vehicle market. Light trucks do not have a decent competitor, so Porter 2 and Bongo 3 dominate. Edison Motors is expected to release a one-ton truck early next year, but it is expected that the demand for the Porter 2 and the Bongo 3 will not be deprived as it is only available as a pure electric vehicle.
The semi-heavy truck is monopolized by Hyundai Mighty. Competitive domestic cars are only Tata Daewoo, which was launched this month, stronger, and imported cars include Elf from Isuzu in Japan, TGL from MAN in Germany, and Aomark from Photon in China, but it is safe to say that there is virtually no sales volume. For medium-sized and heavy-duty trucks, Hyundai Mega Trucks, Pavis, and Exient are overwhelming, but fortunately, Tata Daewoo’s Novus, Prima and imported trucks are holding some checks.
As for the public transportation bus, sales of Hyundai Motors over the past few years have been dominant. It is said that approximately 2,000 units are currently on standby at Hyundai Motor’s Jeonju production plant. In the electric bus field, domestic brands such as Woojin Industrial Electric, Edison Motors, and various Chinese companies are holding back Hyundai Electic to some extent, but the sales volume of electric buses itself is not yet large, so it has not had a big impact on the entire market.
As such, as the sales volume of Hyundai Motor Group is overwhelming for both passenger cars and commercial vehicles, the word’Korea is the Republic of Hyundai Motor Company’ is being said. It is natural because it is a domestic brand, but despite the presence of other domestic brands, it is showing too much focus on Hyundai.
“The only car worth buying is Hyundai.”
Structure inevitable to buy a Hyundai car
Why is Hyundai’s sales volume overwhelming in Korea? The answer is simple. This is because it is concluded that the only car worth buying is Hyundai. First of all, compared to Renault Samsung, Chevrolet, and Ssangyong, Hyundai has the advantage of having a wide variety of options.
In the case of sedans, Avante, Sonata, and Granger are responsible for the sales volume at each position, and in the case of SUVs, the lineup is tight, from the ultra-small Venue to the large Palisade. Not only that, there are Kia Motors, which have many sibling models, and Genesis if you want a premium model. On the other hand, Renault Samsung, Ssangyong Motor, and Chevrolet have a narrow range of options due to their poor lineup.
In addition, the abundant option specifications compared to other domestic cars is one of the factors leading to the selection of Hyundai. Domestic consumers are strict among global consumers. In order to meet high-level consumers, Hyundai Motor Company is continuously developing advanced convenience specifications and applying them to new cars. The currently available Avante also has a convenience specification that is not envious of the Grandeur.
On the other hand, the other three brands lack option specifications compared to Hyundai models in their class. However, there are cases where the price is similar to or rather more expensive than the Hyundai model of the same class. Of course, consumers want to choose a car with even one more option if it costs similarly.
In terms of after-sales service and maintenance convenience, Hyundai is on the better side. After sales centers, Renault Samsung, Ssangyong, and Chevrolet also exist nationwide, but they are not as compact as Hyundai Motors, and the cost of consumables is generally higher than that of Hyundai Motors. In addition, Renault Samsung is uncomfortable with maintenance, such as the inability to replace the air conditioner filter itself.
That’s why I get to see the merits of Renault Samsung, Ssangyong, and Chevrolet models on the Internet, but when I look at the car and get a quote from one place to another, I finally find myself writing a purchase contract for Hyundai, Kia, and Genesis.
Keeping the current position
Looks overwhelming
In fact, now is a great opportunity for Renault Samsung, Chevrolet, and Ssangyong Motors to advance. This is because the reliability of Hyundai Motor Group’s model this year has decreased a lot, from minor to fatal defects.
However, the current Renault Samsung, Ssangyong and Chevrolet seem to be difficult to maintain, rather than to advance. Renault Samsung’s ambitious release of the XM3 had a good momentum in the beginning, but when the new car effect ended, sales volume plummeted, and the SM6 facelift was neglected without a new car effect. Recently, the labor-management conflict over the labor union has become increasingly serious, and a strike has been announced.
Chevrolet’s trail blazer, which was launched earlier this year, is performing well below expectations. At one time, sales exceeded Spark, but production losses occurred due to the new coronavirus infection, and so far only 18,511 units have been sold in Korea.
Still, as the export volume of Trax and Trail Blazers increased, it seemed to seize an opportunity for sales growth, but production losses occurred again due to the union members’ strike. Currently, the accumulated deficit is only about 3 trillion won, but GM Korea union members did not back down. Although they have concluded a collective agreement in the last five months, all that remains is wounds. GM headquarters also warned of frequent strikes.
Unlike other brands, SsangYong Motor Co., Ltd., unlike other brands, ended the agreement first without any problems, and recently showed progress with the introduction of new cars, but recently applied for a corporate rehabilitation procedure.
Earlier this year, the Mahindra Group gave up Ssangyong Motor and has been experiencing a liquidity crisis for a long time due to the inability to pay off its debts in time. In addition, parts makers refused to deliver and shut down the plant for two days. If the audit opinion is also rejected in the fourth quarter of this year, it is subject to delisting requirements. Thanks to the application for the corporate rehabilitation process, it saved three months, but failure to resolve liquidity issues and negotiate new investments could result in bankruptcy. Maintaining its current position seems to be overwhelming, so it is not properly holding back Hyundai.
Other domestic brands
Unless it develops
Hyundai’s concentration phenomenon does not break
Looking at the current situation in the automobile market, it is very likely that Hyundai’s sales volume will continue to be overwhelming. Hyundai, Kia, and Genesis performed well despite the new coronavirus infection this year, but Renault Samsung, Ssangyong, and Chevrolet are getting worse.
The only way to break through the concentration of Hyundai’s sales volume is to increase its market share by launching cars that can outperform Hyundai Motors by Renault Samsung, Ssangyong and Chevrolet. And as the era of electric cars is approaching, we must now see the game with the development of electric cars. However, plans to develop and introduce electric vehicles of the three brands are also sluggish. It is a very sad reality. It was Auto Post Issue Plus.
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