Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Hyundai losing market share in home turf
By Park Jin-hai
Hyundai-Kia Motors’ market share in Korea has hit the lowest in September for the year.
The country’s No. 1 carmaker and its smaller affiliate accounted for 67.3 percent of the local market last month. It is the lowest since December last year when they recorded 66.7 percent, according to the Korea Automobile Manufacturers Association (KAMA).
Hyundai has suffered steady falls in sales.
After the March launch for LF Sonata, Hyundai’s market share peaked at 44.6 percent in April. But, its share has dropped for the past five months since: 43.5 percent in May, 42.8 percent in June, 40.8 percent in July, 39.1 percent and 37.6 percent in August and September.
Except for two models ― Sonata and Genesis sedans ― sales of the rest of Hyundai vehicles were down compared to a year earlier.
Sonata’s accumulated sales in the first nine months grew 17.7 percent at 80,414 units, while the sales for Genesis nearly doubled at 27,596 from previous year.
Its compact Avante’s sales were down 6.4 percent at 65,075. Sales for Accent, Veloster, i30 and Equus contracted 24.4 percent, 43.2 percent, 53.7 percent and 30.9 percent, respectively.
Market analysts view that the “new car effect” or months-long temporary sales boost following the launch of new car models didn’t last long for Hyundai cars and the long standing labor dispute hurt its sales.
The sales for LF Sonata, for which the company invested some 450 billion won over three years to develop, have been losing its new car effect fast since March launch. It sold over 10,000 units in April and May, but its monthly sales slipped to below 6,000 level in August and September.
New diesel powered Grandeur was launched in July as well. But it also failed to beef up the sales in that segment.
The accumulated sales figure for Grandeur this year has shrunk 1.2 percent from a year earlier, signaling that the demand for Grandeur has simply shifted from gasoline to diesel, failing to create new customer base.
The company holds a high hope in the fourth quarter, when Aslan, a large luxury sedan that slots in between Grandeur and Genesis, and Sonata Hybrid are launched in the local market.
“When the company adds these new class cars in the later fourth quarter, market share will be go up,” said a company official, declining to comment whether it will recover the 70 percent local market share within this year.
In 2009, the Hyundai-Kia's combined market share was 76.8 percent, but since then, they have been losing dominance on their home turf.
Last year, Hyundai-Kia's market share stood at 71.4 percent, down from 74.6 percent in 2012.
In a sharp contrast to Hyundai cars, imported brands has been encroaching the local market faster than ever.
During the first nine months this year, sales of new foreign cars reached 145,844, up 25.6 percent from 116,085 sold a year earlier. This gives imported brand cars a local market share of 12.2 percent.