| |
Hyundai Leads March Sales in South Korea
1 Apr 08
The South Korean vehicle manufacturers are enjoying steady growth at home and overseas, as yet largely unaffected by the global economic problems.
Global Insight Perspective | | Significance | The South Korean vehicle manufacturers are strong exporters, so continuing sales growth indicates that most markets remain positive. | Implications | Since the Asian financial crisis a decade ago, South Korean manufacturers have progressed to a point where broad product ranges and disparate markets reduce their exposure to fluctuating sales. | Outlook | Hyundai is well placed to ride out the global economic problems, although its smaller rivals may have to readjust as market demand shifts. |
Sales data published by the five main South Korean vehicle manufacturers shows overall growth accelerating even as the global economic turmoil continues to unravel. This is mainly thanks to the consistent expansion of Hyundai, while its rivals exhibited slightly more mixed results. Total sales of the South Korean manufacturers for the month came to 495,379 units, an increase over the same month last year of 7.0%. The greater part of this growth was found overseas, sales volumes abroad reaching 383,665 units, a year-on-year (y/y) increase of 7.3%. Nevertheless, domestic sales also revealed a strong increase, of 6.2% to 111,714 units. The domestic sales figures do not yet include the import sector, data for which is declared separately, but this is also expected to show good growth prospects. Imports are likely to add another 5,500 units. South Korean Vehicle Sales: March 2008 | | | Domestic | Y/Y Change % | Overseas | Y/Y Change % | Total | Y/Y Change % | Hyundai | 58,651 | 8.5 | 199,744 | 13.6 | 258,395 | 12.4 | Kia | 28,316 | 23.1 | 92,850 | -9.5 | 121,166 | -3.5 | GM Daewoo | 10,299 | -18.8 | 76,966 | 14.2 | 87,265 | 8.9 | Renault-Samsung | 10,046 | -5.3 | 8,372 | 67.4 | 18,418 | 18.0 | SsangYong | 4,402 | -8.3 | 5,733 | -16.4 | 10,135 | -13.1 |
Hyundai is the undisputed champion in both its home and overseas markets. The brand’s total sales in March were up by 12.4%, the second biggest relative increase among its peers, but in volume terms it leaves its domestic rivals in the shade. Hyundai gained 28,527 units, four times the next highest volume increase, recorded by GM Daewoo. Hyundai’s affiliate, Kia Motors, fared less well with an overall loss of 3.5%. Although its domestic market share grew at the fastest rate, to 23.1%, volumes were dragged back down by a 9.5% contraction in overseas sales. For the first three months of the year its domestic sales posted growth of around 10% y/y to 74,411 units, attributable to the new Mohave sport utility vehicle (SUV), while exports were weakly positive over the period with growth of 1.8% to 266,461 units. In contrast, GM Daewoo achieved sold growth of 8.9% thanks to its strong performance overseas, while its monthly domestic market sales suffered the most serious decline of its competitors. This means that Renault-Samsung is challenging GM Daewoo for third position in the home market, even though it also suffered a significant contraction in volumes for the month. Overseas, though, a remarkable increase of 67.4% was attributed to shipments of the QM5/Renault Koleos, foreign sales of which are not due to begin until May. The company expects that new models will bring total sales for 2008 to 200,000 units, up from the 172,175 units sold in 2007. Renault of France owns 80.1% of the company, the rest being held by Samsung Card. In a distant fifth position is SsangYong, majority-owned by Shanghai Automotive Industrial Corporation (SAIC) of China. The South Korean company is dependent upon SUV sales but has been struggling to maintain its share of these market segments. Through its access to SAIC’s international network it is extending its scope into passenger cars, the luxury Chairman W having been released at the end of last month and recording orders of 1,020 units. Outlook and Implications All the South Korean manufacturers are strong exporters, only Renault-Samsung’s overseas sales dipping below 50% of its total sales for March. SsangYong sold 56.6% of its March output overseas and this is likely to climb if it can exploit its relationship with SAIC to find new opportunities in China. It is particularly hopeful that the Chairman W will spearhead its expansion into the passenger car sector. GM Daewoo is now the biggest exporter, the Renault Koleos version of the QM5 boosting the proportion of total sales to 88.2% during the month, although actual volumes are still relatively low. Hyundai and Kia exported 77.3% and 76.6%, respectively, a proportion that will fall as more overseas plants take up local production and even begin to export as well. A slowdown in the U.S. market, with the possibility of the contagion spreading to other markets, represents another threat to overseas sales.
|
|
|
