Hyundai Motor's domestic sales fell 41.1% in August to an 11-year low, hurt by production disruptions from a union strike. Global sales dropped 14.2% as a result of the weak domestic performance.
Hyundai Motor (005380) sold 288,574 vehicles worldwide in August, including 34,333 units in South Korea and 254,241 units overseas, the company said on the 1st.
The 14.2% decline from a year earlier marked the first time global sales fell below 300,000 units since January 2022, when the company sold 282,656 vehicles, a gap of four years and seven months.
The steep drop in domestic sales was the main driver. Hyundai Motor's August domestic sales plunged 41.1% from the same period a year earlier, the lowest figure since sales statistics became publicly available in 2016.
It was the first time domestic sales fell short of 40,000 units since February 2020, when the company sold 39,290 vehicles as the COVID-19 outbreak began, a span of six years and six months. Kia (000270) sold 40,213 vehicles domestically last month, far outpacing Hyundai Motor.
The decline stemmed from production disruptions caused by the union's first full-scale strike in a decade. Hyundai Motor's management and union clashed during this year's wage negotiations over demands including performance bonuses worth 30% of last year's net profit and an extension of the retirement age. The union staged a total of 60 hours of strikes this year, halting production for 120 hours. The auto industry estimates the resulting production shortfall at about 55,000 vehicles.
In August, the union staged 30 hours of strikes that halted 60 hours of production. On the 21st of last month, workers walked out for eight hours in the first full-scale strike in 10 years.
In the domestic market, sedan sales totaled 10,922 units, including 5,931 Grandeurs, 3,105 Sonatas and 1,462 Avantes. Recreational vehicles totaled 10,810 units, including 3,596 Santa Fes, 1,812 Palisades and 1,372 Ioniq 5s.
Small commercial vehicle sales totaled 6,503 units, including 4,224 Porters and 2,184 Starias. Mid- and large-size buses and trucks totaled 1,553 units. Genesis sold 4,545 vehicles, including 1,460 G80s, 1,406 GV70s and 1,240 GV80s.
A Hyundai Motor official said August was affected by production disruptions from the strike and by customers waiting for new models. "We will expand our market share based on newly launched models such as The New Grandeur and The All-New Avante," the official said.
