Korean automakers Hyundai Motor Co. and Kia Motors Corp. are expected to continue to suffer sales drops in the current quarter due to a supply shortage stemming from last month's frequent strikes, industry data showed Tuesday.
According to the data, Hyundai's local plants sold 89,000 vehicles in August, down 31 percent from a year ago. Sales of Kia, Hyundai's smaller affiliate, fell 12.7 percent on-year to 95,000 units.
Unionized workers of the carmakers staged partial strikes about 10 times last month to demand shorter working hours and higher wages.
The walkouts cost 65,304 vehicles for Hyundai and 36,707 units for Kia in August alone, according to the data.
Market watchers said the weeks-long strikes will make their sales sluggish in the third quarter as production is expected to make a slow recovery.
Hyundai Securities Co. forecast in a report that Hyundai and Kia's global sales will shrink 5 percent in the July-September period but will turn around in the fourth quarter on the back of strong overseas sales.
Shinhan Investment Corp. said Hyundai's production will normalize faster in the fourth quarter as the company's management and labor reached a collective agreement last week and the compromise was finalized by the union on Monday.
Shares of Hyundai traded at 235,000 won ($207.7) on the Seoul bourse as of 1:55 p.m., down 2.69 percent from the previous session. Kia traded down 2.12 percent at 74,000 won. (Yonhap)