November 23, 2024

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[THE INVESTOR] Korea’s top two carmakers Hyundai Motor and Kia Motors saw their sales in China decline 37 percent on-year in July, showing no immediate signs of recovery from its protracted sales slump in the world’s largest auto market, industry data showed on Aug. 24. 

In July, Hyundai and Kia sold a combined 70,017 units, sharply declining from 110,010 units from a year earlier, according to data by the China Passenger Car Association. Separately, Hyundai’s sales dropped 28.6 percent to 50,015 units, while Kia plummeted 51.22 percent to 20,002 units.

Despite the sliding sales by the Korean carmakers, the overall Chinese auto market gained 6 percent on-year last month. 

Hyundai’s poor performance is largely due to heightened Chinese consumer backlash over Seoul’s decision to deploy the US-led THAAD missile system, according to the carmaker. 

As political tension between Seoul and Beijing still persists, industry watchers say the sales decline is expected to continue in the latter half of the year, raising concerns that the auto giant will be unable to sell even 1 million units in the country. 

In the first half of this year, Hyundai and Kia’s sales were down 52.3 percent on-year to 430,947 units. 

Hyundai is making all-out efforts to win back Chinese consumers. 

It recently formed a China task force that covers all areas -- including sales, research and design, brand strategy and product -- to analyze the market and improve sales. 

The auto giant is banking on new car launches in China in an attempt to offset some of its sales loss in the second half. Hyundai plans to unveil ix35 SUV and new subcompact sedan Reina, while Kia plans to roll out new Pegas compact sedan and K2 Cross SUV, as well as revamped K4 sedan.

By Ahn Sung-mi (sahn@heraldcorp.com)