Hyundai Motor's market share falls below 40%

By Lee Hyo-sik

Hyundai Motor saw its domestic market share fall below 40 percent in 2015 for the first time since 2000, as consumers purchase more import cars, from companies such as BMW and Mercedes-Benz. GM Korea, Renault Samsung Motor and Ssangyong Motor also increased their competitiveness in 2015 on the back of their many popular models.

The country’s largest carmaker said Friday that its market share fell to 39 percent in 2015 from 41.3 percent a year earlier. The figure had reached as high as 49.1 percent in 2007 but has since faced a steady decline as more consumers opt to buy German- and Japanese-made vehicles.

The combined market share with its affiliate Kia Motors also dropped below 70 percent for the second consecutive year.

The two automakers accounted for 67.7 percent of the domestic market in 2015, down from 69.3 percent in 2014 when the figure fell below 70 percent for the first time since Hyundai acquired Kia in 1998.

The combined market share peaked at 76.8 percent in 2009 and has since declined over the past six years.

Industry analysts say that over the past few years Hyundai and Kia have been losing market share to BMW, Mercedes-Benz, Volkswagen and other foreign carmakers as the growing number of motorists seek to drive vehicles produced outside the country.

Foreign brands sold a combined 243,900 cars in 2015, up 24.2 percent from the previous year. BMW topped the list with 47,877, followed by Mercedes-Benz with 46,994, Volkswagen with 35,778 and Audi with 32,538.

In addition, Renault Samsung, GM Korea and Ssangyong Motor have fared well at the expense of their larger domestic rivals. Renault Samsung enjoyed brisk sales of its compact SUV QM3, while GM sold a record number of cars here thanks to the popular Impala sedan. Ssangyong also had a record year in 2015 as more people purchased its SUVs the Tivoli and Korando C.

However, Hyundai and Kia said they will make every effort to bolster their market shares this year.

They plan to introduce a wide range of new vehicles, including the Ioniq hybrid compact sedan and the new K7 mid-size sedan, and promote the EQ900, the first premium vehicle launched under the Genesis brand.

“We expect foreign brands will continue to pose a threat to us this year,” a Hyundai Motor spokesman said. “However, we will introduce a series of new eco-friendly smart vehicles and promote the EQ900 premium sedan. We will secure larger market shares in 2016.”

The world's fifth-largest carmaker by production, the Hyundai-Kia team plans to produce and sell more than 8.13 million cars around the world in 2016 _ 5.01 million for Hyundai and 3.12 million for Kia.