Hyundai Sales Drop 7 Percent Amid Strikes and Supply Disruptions

Hyundai Motor recorded its worst performance in domestic sales since the 2008 global financial crisis across the first three quarters of the year, dropping 7 percent in global sales compared to the same period last year, hankyung.com reported on October 4.

Key Takeaways:

• Hyundai sold 2,886,763 vehicles globally from January to September, down from 3,105,346 units in the same period last year.
• Domestic South Korean sales hit 448,181 units, matching the lows seen during the 2008 global financial crisis.
• Production losses totaled approximately 55,200 vehicles due to a general labor strike in August and a component factory fire in March.

Sales Volume Hits Lowest Level Since 2010

The automaker’s total sales volume for the first nine months of the year fell below the 2.9 million mark, falling below the three-million mark typically maintained since the pandemic slump of 2020. Excluding the pandemic-affected year of 2020, this total marks the lowest level recorded since 2010. Domestically, the performance mirrored the 440,763 vehicles sold during the 2008 financial crisis, driven by sharp declines across major SUV lines including the Santa Fe, Palisade, and Tucson, which fell by 31.7 percent, 41.8 percent, and 39.0 percent respectively. Genesis luxury brand sales dropped 28.9 percent over the same timeframe. By contrast, Kia recorded 2,478,144 sales globally, marking a 4.4 percent increase year-over-year.

Industrial Strikes and Supply Chain Disruptions

Industry analysts point to multiple compounding domestic and external factors behind the downturn. In March, a fire at supplier Safety Industries disrupted the production lines for the Palisade and Genesis models by halting safety valve deliveries. In August, the Hyundai labor union executed a general strike for the first time in 10 years, enforcing 60 hours of total stoppages that resulted in an estimated production deficit of 55,200 vehicles. Simultaneously, expansion by low-cost Chinese electric vehicle competitors such as BYD alongside Tesla eroded overseas market share.

Upcoming Hybrid Launches and Export Strategy

To reverse the downward trend, Hyundai plans to expand its vehicle lineup. The company scheduled the domestic release of the fifth-generation Tucson full change model and the Genesis GV80 hybrid for this month. Industry projections indicate the starting price for the GV80 hybrid will land in the mid-to-high 70 million won range, sitting up to 5 million won below initial market expectations and undercutting rival models like the Lexus RX 350h by about 10 percent. In Europe, where electrification demand remains strong, the company aims to scale up sales of the Ioniq 3.

Hyundai’s domestic sales volume matches the 440,763 units recorded during the 2008 global financial crisis.