Korea aims to produce 4.6 million vehicles in 2014

New Hyundai Sonata to compete against imported cars

2014/05/15

Summary

Korean vehicle production, sales and exports Korean vehicle production in 2013 decreased by 0.8% year-over-year (y/y) to 4.52 million units (excluding the imported cars). Sales in Korea fell 1.9% to 1.38 million units in the face of surging imports. Meanwhile, exports from Korea also dropped 2.6% to 3.09 million units partly because of the appreciation of the Korean Won for these two years. According to the outlook announced by Korea Automobile Manufacturers Association (KAMA) in February 2014, production in Korea for 2014 will rise to 4.6 million units, a 1.7% increase y/y. Sales in Korea are expected to edge up by 1.2% y/y to 1.40 million units, while exports from Korea will grow by 3.6% y/y to 3.2 million units.

 Hyundai Motor Group has been losing its market share in Korea to growing imported cars. The group reported sluggish sales in the developed markets including Europe and the U.S. while it experienced growth in production and sales in China and other emerging markets. In order to enhance business in China, Hyundai Motor Company plans to build a new plant in Chongqing.

 According to LMC Automotive's forecast in March 2014, Korean light vehicle production will rise to 4.56 million units in 2014, but will fall to around 4.45 million units in 2015-2016. Hyundai's launch of the redesigned Sonata is expected to boost production in 2014, while GM's plan to end sales of Chevrolet vehicles in Europe should reduce output in Korea in 2015-2016. LMC Automotive anticipates that production will rebound to 4.54 million units in 2017.


Related Reports:
Features on new Hyundai/Kia models: Genesis adopts multiple active safety systems (Mar. 2014)
Hyundai-Kia in China: 2.4 million in vehicle sales targeted for 2016 (Dec. 2013)



Hyundai/Kia Group's market share in Korea fell to 68% in 2013

Market shares of passenger cars in Korea In Korean passenger car market for 2013, Hyundai Motor Group's share fell from 71.7% in 2012 to 68.3%. Both Hyundai and Kia lost their market shares in the face of surging imported cars and due to their lack of new models and green cars. GM Korea maintained its market share of 10.1%. Ssangyong expanded its share to 4.9% with growing demand for its SUVs. The automaker ranked fourth, surpassing Renault Samsung which gained a share of 4.6%. The share of imported cars expanded from 10.0% in 2012 to 12.1%.


Korean sales of passenger cars by brand

(Units)
2009 2010 2011 2012 2013 Market share
2012 2013
Hyundai 547,967 482,261 499,043 505,714 479,433 38.7% 37.1%
Kia 366,533 434,881 436,672 430,757 403,219 33.0% 31.2%
GM Korea 104,424 112,466 127,697 131,794 130,378 10.1% 10.1%
Ssangyong 22,189 32,459 38,651 47,700 63,970 3.7% 4.9%
Renault Samsung 133,630 155,697 109,221 59,926 60,027 4.6% 4.6%
Imports 60,993 90,562 105,037 130,858 156,497 10.0% 12.1%
Total 1,235,736 1,308,326 1,316,321 1,306,749 1,293,524

Source: Korea Automobile Manufacturers Association (KAMA)

 

Korean vehicle production, sales, exports and imports

(Units)
2009 2010 2011 2012 2013 2014
(Outlook)
Jan.-Mar.
2013
Jan.-Mar.
2014
Production in Korea 3,512,926 4,271,741 4,657,094 4,557,738 4,521,429 4,600,000 1,114,044 1,154,853
Sales in Korea 1,394,001 1,465,426 1,474,637 1,410,857 1,383,358 1,400,000 323,585 337,587
Exports from Korea 2,148,862 2,772,107 3,151,708 3,170,634 3,089,284 3,200,000 780,184 788,957
Imports to Korea 60,993 90,562 105,037 130,858 156,497 174,000 34,964 44,434
Source: KAMA
(Note) 1. Sales in Korea do not include imported cars.
2. 2014 outlook for production, sales and exports was announced by KAMA in February 2014 while that for imports was disclosed by Korea Automobile Importers and Distributors Association (KAIDA) at the end of 2013.

 

 



German cars dominate Korean import market

Market share of imports in Korea New registrations of imported cars in Korea for 2013 reached 156,497 units, up by 19.6% y/y, passing the 150,000 mark for the first time. Every OEM's active marketing activities, rising demand for diesel models, and growing purchase by younger consumers boosted sales of imported cars. By brand, German brands dominated the higher rankings. BMW totaled 33,066 units (21.1% of import market), ranking first. VW ranked second, selling 25,649 units (16.4%), followed by Mercedes-Benz at 24,780 units (15.8%), and Audi at 20,044 units (12.8%). By powertrain, more than 60% of the imported cars were powered by diesel engines.

 Korea Automobile Importers and Distributors Association (KAIDA) disclosed a forecast in December 2013 that new import registrations for 2014 will increase by 11.2% y/y to 174,000. While appreciation of Korean Won and lifting tariffs on European vehicles under the EU-South Korea FTA are positive factors, higher household debt and consumer doubts about the economy are negative factors. As a result, growth of import registrations will be slower compared to a 20% increase in 2013.


Imported car sales in Korea by brand

(Units)
Brand 2012 2013 YoY
Sales Market share Sales Market share
BMW 28,152 21.5% 33,066 21.1% 17.5%
VW 18,395 14.1% 25,649 16.4% 39.4%
Mercedes-Benz 20,389 15.6% 24,780 15.8% 21.5%
Audi 15,126 11.6% 20,044 12.8% 32.5%
Toyota 10,795 8.2% 7,438 4.8% -31.1%
Ford 5,126 3.9% 7,214 4.6% 40.7%
MINI 5,927 4.5% 6,301 4.0% 6.3%
Lexus 4,976 3.8% 5,425 3.5% 9.0%
Honda 3,944 3.0% 4,856 3.1% 23.1%
Chrysler 4,123 3.2% 4,143 2.6% 0.5%
Land Rover 1,916 1.5% 3,103 2.0% 62.0%
Nissan 2,398 1.8% 3,061 2.0% 27.6%
Others 9,591 7.3% 11,417 7.3% 19.0%
Total 130,858 100.0% 156,497 100.0% 19.6%

Source: KAIDA
(Note) Toyota's sales decreased in 2013 partly because its sales had doubled in 2012 with successive launches of new models.

 

 



Production capacity of 5.56 million in Korea and 4.39 million overseas

 In Korea, vehicle production capacity totals 5.56 million units, of which 3.87 million units are held by Hyundai Motor Group. Kia Motors has expanded the capacity at its Gwangju plant from 500,000 to 620,000 in 2013, but operations of new facilities seemed to delay due to the strikes and suspension of overtime work on weekends. GM Korea's production is anticipated to shrink since GM plans to discontinue sales of Chevrolet vehicles in Europe at the end of 2015. Most of the Chevrolet vehicles sold in Europe are sourced from Korea.

Vehicle production capacity in Korea by OEM

Plant Annual production capacity (1,000 units) Models and movement
Hyundai Motor Ulsan 1,700 Hyundai Avante (Elantra), Tucson, Santa Fe, Genesis, i30, i40, etc.
Asan 300 Hyundai Grandeur (Azera), Sonata
Jeonju 125 Hyundai buses and trucks
Kia Motors Hwasung 580 Kia K3 (Forte, Cerato), K5 (Optima), K7 (Cadenza), Sorento
Gwangju 620 Kia Sportage, Carens (Rondo), AM, Soul, Soul EV, trucks, buses(While its annual capacity was raised from 500,000 to 620,000 in mid-2013, operations of the renovated plant reportedly delayed due to the strikes and suspension of overtime work on weekends.)
Sohari 350 Kia Pride (Rio), Carnival, Ray, K9 (Quoris/K900)
Seosan 190 Kia Morning (The Seosan plant is a joint venture established with Donghee.)
GM Korea Bupyeong 500 Chevrolet Malibu, Captiva, Trax/Opel Mokka, etc. (Note 1)
Gunsan 300 Chevrolet Orlando, Cruze (Note 2)(In February 2014, GM Korea's management and labor agreed to reduce its per-hour car output to 35 from current 54, while maintaining the two-shift work scheme.)
Changwon 240 Chevrolet Beat/Spark (Matiz), Spark EV (Note 3)
Ssangyong Pyongtaek 330 Chairman H, Chairman W, Rexton, Korando family
Renault Samsung Pusan 300 SM3, SM5, SM7, QM5, SM3 Z.E. Production of the Nissan Rogue will start in August 2014.
Daewoo Bus Tongrae, Ulsan 9 Buses
Tata Daewoo Gunsan 20 Trucks
Annual production capacity in Korea totals 5,564,000 with 3,865,000 held by the Hyundai Motor Group
Source: Each OEM's website and others
(Note) 1. GM Korea plans to transfer production of the Opel Mokka to Opel's plant in Spain in the latter half of 2014.
2. It is reported that production of the next-generation Chevrolet Cruze (to be launched at the end of 2015) will be transferred from the current Gunsan plant. (The plants where the new Cruze will be built are not disclosed yet.)
3. In January 2014, GM Korea discontinued production of the Damas minivan and Labo mini truck at the Changwon plant. The decision was made due to the expected increase in production costs in order to be compliant with the government's new stricter safety and CO2 emissions rules. The government, however, faced a backlash from the users of the two models including self-employed small vendors. As a result, the government decided to offer these two vehicles a grace period for its tighter rules. GM Korea will resume production of these models in the latter half of 2014.


 Hyundai Motor Group is the only Korean OEM that produces vehicles overseas on a full scale. Its production capacity added up to 4.39 million units after Hyundai expanded capacities at its plants in Turkey and Brazil in 2013 and Kia started operations of its third plant in China in January 2014. The Group's overseas capacity is expected to climb to 5.05 million units by around 2016 when Hyundai's fourth passenger car plant and first commercial vehicle plant in China are built and Kia's third plant in China enhances its production capacity.

 

Hyundai Motor Group's overseas production capacity

Annual production capacity
(1,000 units)
Production in 2013
(1,000 units)
Outline
Hyundai Motor India 600 633 The i10, i20, Santro, Accent and Elantra are built.
Turkey 210 104 The i20 and i10 are assembled. In September 2013, its annual capacity was doubled to 200,000 to start the production of the new i10.
China 1000→1300
(2016)
1,031 The factory of Beijing Hyundai Motor assembles the Sonata, Elantra, Tucson, Verna, ix35 and Santa Fe. The company plans to build a fourth plant with an annual capacity of 300,000 units in Chongqing.
0→160
(mid-2014)
45 This will be a commercial vehicle plant operated by Sichuan Hyundai Motor, a fifty-fifty joint venture established by Hyundai and Sichuan Nanjun Automobile. The plant will start operations in mid-2014, until when vehicles are produced at the existing plant of Sichuan Nanjun Automobile.
US 399.5 399 The Sonata and Elantra are assembled.
Czech Republic 300 304 The ix20, i30, i30cw and ix35 are produced.
Russia 220 229 The Solaris developed for Russia and the Kia Rio are built.
Brazil 200 167 The HB20, a compact hatchback designed for Latin America is produced. In May 2013, the third shift was added to raise the plant's annual capacity to 200,000 units from 150,000 units.
Kia Motors China 800→1,000
(to be scheduled)
547 The Sportage, Forte, K5, K3 and K2 are built. In January 2014, the third plant started operations to boost the total annual capacity to 800,000 units from 350,000 units. The annual capacity will be increased to a million units over several years.
Slovakia 300 313 The cee'd, pro cee'd, Sportage and Venga are produced.
US 360 370 Sorento, Optima, Hyundai and Santa Fe are built.
Total annual capacity 4,389.5→5,049.5 4,142

Source: Hyundai Motor Global Plant Sales, 2013 Annual Business Results (Jan. 23, 2014), Kia Motors Plant Sales

 

 



Hyundai Motor Group aims to sell 7.86 million units globally in 2014

Hyundai Motor Group to enhance businesses in China

Overseas production accounts for 55% in 2013  Hyundai Motor Group's global sales (total shipments of vehicles produced in Korea and overseas) increased by 6.0% y/y to 7.56 million units in 2013. Sales in Korea fell by 4.3% y/y to 1.1 million units while exports from Korea also dropped 1.4% y/y to 2.32 million units. On the other hand, shipments of vehicles produced overseas rose 14.1% y/y to 4.14 million units, which accounted for 55% of total shipments. Thus, the Group's overseas production surpassed its production in Korea for the second consecutive year.
Global sales target of 7.86 million units for 2014  Hyundai Motor Group sets a global sales target at 7.86 million units in 2014, up 4.0% y/y, according to its outlook disclosed in January 2014. Hyundai aims to regain ground in Korea and the U.S. with the all-new Genesis and Sonata. Kia will improve its competitiveness based on its increased brand awareness in the global market. Both automakers plan to enhance businesses in China through launching new exclusive models for the country and expanding their production capacities there.

 

Hyundai Motor Group's shipments (by vehicle produced in Korea and overseas)

(Units)
2010 2011 2012 2013 2014
(Plan)
Jan.-Mar.
2013
Jan.-Mar.
2014
Hyundai
Motor
Vehicles produced in Korea 1,730,696 1,884,633 1,911,259 1,820,145 1,872,000 446,739 472,671
(thereof:) Sales in Korea 657,897 682,228 667,496 640,698 682,000 153,728 160,675
(thereof:) Exports 1,072,799 1,202,405 1,243,763 1,179,447 1,190,000 293,011 311,996
Vehicles produced overseas 1,881,805 2,185,458 2,499,098 2,912,221 3,028,000 724,965 754,796
Total 3,612,501 4,070,091 4,410,357 4,732,366 4,900,000 1,171,704 1,227,467
Kia
Motors
Vehicles produced in Korea 1,400,293 1,580,998 1,588,735 1,597,821 1,660,000 395,844 432,495
(thereof:) Sales in Korea 483,412 491,712 480,825 457,787 480,000 108,650 107,969
(thereof:) Exports 916,881 1,089,286 1,107,910 1,140,034 1,180,000 287,194 324,526
Vehicles produced overseas 729,655 957,022 1,130,765 1,229,271 1,300,000 306,351 339,375
Total 2,129,948 2,538,020 2,719,500 2,827,092 2,960,000 702,195 771,870
Group
total
Vehicles produced in Korea 3,130,989 3,465,631 3,499,994 3,417,966 3,532,000 842,583 905,166
(thereof:) Sales in Korea 1,141,309 1,173,940 1,148,321 1,098,485 1,162,000 262,378 268,644
(thereof:) Exports 1,989,680 2,291,691 2,351,673 2,319,481 2,370,000 580,205 636,522
Vehicles produced overseas 2,611,460 3,142,480 3,629,863 4,141,492 4,328,000 1,031,316 1,094,171
Total 5,742,449 6,608,111 7,129,857 7,559,458 7,860,000 1,873,899 1,999,337
Source: Hyundai Motor Sales Performance, 2013 Annual Business Results (Jan. 23, 2014); Kia Motors Monthly Sales Performance, 2013 Business Results (Jan. 24, 2014)
(Note) Exports refer to those of completely built-up vehicles from Korea and do not include KD sets.

 

Hyundai Motor's new model launch plan (2014)

(Note) Launch time shows the time of launch in Korea unless otherwise specified. (This also applies to the following tables)
Launch Outline
New Sonata Mar. 2014 This is the seventh-generation model of the leading midsize sedan. The model will be released in the global markets including the U.S. in the latter half of 2014. It adopts Hyundai Motor's latest design language "Fluidic Sculpture 2.0." In 2015, Hyundai aims to sell 338,000 Sonatas in total: 89,000 in Korea and 249,000 overseas.
ix25 Latter half
of 2014
(China)
This is a compact SUV designed exclusively for China. Its concept model was unveiled at the 2014 Beijing Auto Show. The ix25 is 4,270 mm long, 1,780 mm wide, and 1,630 mm high with a wheelbase of 2,590 mm.

Kia Motors' new model launch plan (2014)

Launch Outline
New
Carnival/Sedona
Jun. 2014 This is the third-generation model of the 9 or 11-seater midsize MPV. In the third or fourth quarter of 2014, the 7 or 8-seater model is scheduled to be released in the U. S.
New Sorento Sep. 2014 The new Sorento represents the third-generation midsize crossover SUV.
K4 Latter half
of 2014
(China)
This is a midsize sedan developed especially with Chinese consumers in mind. Its concept model was introduced at the 2014 Beijing Auto Show. The K4 comes with a 1.6-liter turbocharged gasoline direct injection engine combined with a 7-speed dual clutch transmission.

 

Hyundai Motor Group's aggressive plan to launch various green cars

Hyundai Motor Group has an aggressive plan to introduce a wide range of green cars. The plan is expected to deal with a surge in imported cars as well as the Korean government's new scheme to increase vehicles with low CO2 emissions starting from 2015.
Hybrid vehicle
(HV)
Hyundai Grandeur Hybrid Both HVs were launched in December 2013. They are the Hyundai Motor Group's first HVs of midsize to large premium sedans.
Kia K7 Hybrid
Electric vehicle
(EV)
Kia Soul EV This EV was released in Korea in April 2014. It delivers a range of 148 km on a full charge.
Hyundai Model name to be determined Hyundai plans to launch its EV in 2016 (according to news reports).
Fuel cell vehicle
(FCV)
Hyundai Tucson (ix35) Fuel Cell This FCV was offered for fleet sales in Korea in April 2014. The vehicle is able to travel a total of 594 km on a single fuelling.
Diesel model Hyundai Avante Diesel The diesel version of the Avante was launched in August 2013. The model comes with a 1.6-liter diesel engine.
Kia K3 Diesel Released in December 2013, this version of the K3 is equipped with a 1.6-liter diesel engine.

(Note) The Korean government plans to start a new scheme to impose extra charges for high-emission vehicles in 2015. The government is, however, reconsidering the conditions of the scheme as it may hurt Korean automakers (according to a news report in March 2014). In order to promote the use of green cars, the scheme is originally to impose charges of KRW 250,000-7 million per unit on the purchasers of cars with higher CO2 emissions than the standard (126 g/km) and to offer subsidies of KRW 500,000-3 million per unit to buyers of low-emission vehicles. If the original scheme is put into execution, most of the vehicles produced in Korea would be imposed charges.

 

 



GM Korea to cope with reduced production of vehicles for Europe

GM Korea's output to decrease due to GM's plan to end Chevrolet sales in Europe

Reduction of employees and expansion of exports to Australia  GM decided to drop the Chevrolet brand in Europe by the end of 2015. The move is expected to reduce GM's Korean production by 15-20%, as the country supplies most of the Chevrolet vehicles sold in Europe. Thus, in the first quarter of 2014, GM Korea started a voluntary retirement program open to its 6,000 white-collar workers including those in the research and engineering departments. The automaker does not plan to cut production jobs. A target for the job reductions is not disclosed.
 GM Korea is considering the increase of exports to Australia to compensate for the loss of output (according to a news report in March 2014). GM will discontinue production in Australia by the end of 2017. Sergio Rocha, GM Korea's CEO, said that the decline in Europe would be roughly equal to the volume that is required in Australia.
Expansion of design center  In April 2014, GM Korea invested USD 40 million to renovate its design center located at its headquarters in Incheon. The center has doubled its floor area to 16,640 square meters and installed cutting-edge design facilities. More than 200 designers and other staff will support exterior and interior vehicle styling and digital design for GM's global models. The center will develop new compact models which would follow after the Chevrolet Spark, Aveo and Cruise as well as GM's next-generation EV.

 

GM Korea's vehicle production, sales and exports for Korea

(Units)
2008 2009 2010 2011 2012 2013 Jan.-Mar.
2013
Jan.-Mar.
2014
Production in Korea 813,023 532,191 744,096 810,854 785,757 782,721 200,354 160,840
Passenger cars 686,192 467,430 634,569 633,562 568,776 429,439 125,019 75,711
MPVs 108,004 53,957 92,940 161,853 199,673 328,280 70,163 85,129
Trucks 5,956 4,227 6,158 5,777 6,620 10,928 2,156 0
Buses 12,871 6,577 10,429 9,662 10,688 14,074 3,016 0
Sales in Korea 116,520 114,845 125,730 140,705 145,702 151,340 33,053 34,366
Exports from Korea 702,916 429,259 610,898 656,425 655,878 629,966 171,062 128,189

Source: KAMA
(Note) MPV stands for Multi Purpose Vehicle, which includes SUVs and minivans. (This also applies to the following tables.)

 

 



Renault Samsung aims to increase global unit sales to 200,000 by 2016

Renault Samsung to start production of Nissan Rogue at Pusan plant in August 2014

Returning to profitability in 2013  Renault Samsung recorded net profit of KRW 17.1 billion in 2013 after posting losses in 2011 and 2012 (net loss of KRW 207.6 billion in 2012). Although its global sales declined by 15.1% y/y to 131,000 units, profitability was regained owing to the revival plan in which around 800 employees had retired over these two years and localization of the parts. In April 2014, Renault Samsung presented its mid-term plan by 2016 as it has entered the second stage of recovery.
Sales target of the mid-term plan  According to its mid-term plan, Renault Samsung aims to increase its global sales by 70% from 2013 to more than 200,000 by 2016, ranking third among Korean automakers, only behind Hyundai and Kia. (In 2013, the company ranked fifth behind GM Korea and Ssangyong.)
Enhancement of competitiveness and quality  Renault Samsung plans to give its entire lineup a new design. It also plans to expand its lineup by adding new models including a diesel version of the SM5. The company will also develop successors to the SM5 and QM5 which are Renault Group's global models.
Raising capacity utilization at Pusan plant  Starting in August 2014 at its Pusan plant, Renault Samsung will produce the small SUV Rogue for Nissan for five years. The Korean automaker plans to assemble 80,000 units per year. Most of those vehicles will be exported to the North American market.
 Renault Samsung also hopes to turn its Pusan plant into an export hub for the SM3 Z.E, its EV sedan. This EV model will be exported to Hong Kong and Singapore in 2015. There is a plan to export the model to Europe and South America in the future.
 Renault Samsung is considering production of a new model at its Pusan plant in relation to the cooperation between Renault-Nissan Alliance and Mitsubishi Motors. It is expected to be a new sedan based on the Renault model to be launched under the Mitsubishi brand.

 

Renault Samsung's vehicle production, sales and exports for Korea

(Units)
2008 2009 2010 2011 2012 2013 Jan.-Mar.
2013
Jan.-Mar.
2014
Production in Korea 187,947 189,831 275,269 244,260 153,891 129,638 32,432 29,146
Passenger cars 132,855 161,098 226,520 183,012 100,013 79,951 21,044 18,396
MPVs 55,092 28,733 48,749 61,248 53,878 49,687 11,388 10,750
Sales in Korea 101,981 133,630 155,697 109,221 59,926 60,027 12,749 14,909
Exports from Korea 95,043 56,175 115,783 137,738 94,383 70,983 17,080 10,288

Source: KAMA

 

 



Ssangyong's global sales growing with high demand for Korando family SUVs

Ssangyong Motor to boost global sales to 300,000 by 2016

SUV sales surge in 2013  Ssangyong's sales in Korea climbed by 34.1% y/y to 64,000 units in 2013, bolstered by new models including the Korand Turismo, an 11-seater multi-purpose leisure vehicle, and the Korand C, a compact SUV. With exports of 78,000 units, its global sales amounted to 143,000 units, up 19.7% from the previous year. While the automaker recorded net loss of KRW 2.4 billion in 2013, its losses have decreased for the last three years. The financial structure of the company has become stronger than before. Ssangyong aims to have global sales of 160,000 units in 2014.
Sales target of 300,000 for 2016  Ssangyong disclosed its mid- and long-term plan called "Promise 2016" in January 2014. The automaker aims to double its global sales from 2013 to 300,000 units by 2016. While Ssangyong continues to market the Korando family, it will boost its sales by launching the X100, an all-new entry-level compact SUV, in 2015.
Mahindra to invest KRW 1 trillion  In January 2014, Korean President Park Geun-hye visited India and had a meeting with the chairman of the Mahindra Group, the largest shareholder of Ssangyong Motors. Mahindra's chairman told that the company would invest a total of KRW one trillion over four years to come in the development of new models and technologies. He reportedly mentioned that, after Ssangyong regains profitability, the automaker would consider return of the employees who had been laid off in 2009.

 

Ssangyong's vehicle production, sales and exports for Korea

(Units)
2008 2009 2010 2011 2012 2013 Jan.-Mar.
2013
Jan.-Mar.
2014
Production in Korea 81,445 34,703 80,067 113,249 119,142 143,516 30,752 36,904
Passenger cars 13,398 5,189 8,285 7,319 4,577 3,430 1,003 753
MPVs 68,047 29,514 71,782 105,930 114,565 140,086 29,749 36,151
Sales in Korea 39,165 22,189 32,459 38,651 47,700 63,970 13,293 16,797
Exports from Korea 43,240 12,747 47,756 73,630 71,553 78,740 16,424 19,658

Source: KAMA

 

 



Sales Forecast by LMC Automotive: Korean sales to hover around 1.6 million units in 2015-2017

(LMC Automotive, Quarter 1, 2014)

Korean light vehicle sales forecast by make Korean light vehicle sales declined marginally in 2013 for the second consecutive year. According to LMC Automotive's forecast in March 2014, however, light vehicle sales will increase to 1.54 million units in 2014. An expected recovery in exports should boost job and income growth, and thus vehicle sales. In the long term, fast aging populations, high vehicle density, and high household debt are constraints for sales growth. After 2015, sales will hover around 1.6 million units and are expected to amount to 1.63 million units in 2017.

Korean light vehicle sales forecast by make

(Units)
Sales Group Global make 2011 2012 2013 2014 2015 2016 2017
Total 1,541,480 1,508,347 1,504,395 1,536,133 1,588,774 1,616,278 1,625,415
Hyundai Group Hyundai 656,635 643,380 616,459 690,790 680,657 631,267 669,138
Kia 491,408 480,503 456,459 425,776 464,245 475,331 420,834
Hyundai Group Sub-total 1,148,043 1,123,883 1,072,918 1,116,566 1,144,902 1,106,598 1,089,972
General Motors Group Buick 10,294 7,008 3,921 4,611 4,589 3,447 4,864
Cadillac 729 471 300 593 738 777 760
Chevrolet 130,389 139,001 147,119 129,451 136,199 156,703 145,465
General Motors Group Sub-total 141,412 146,480 151,340 134,655 141,526 160,927 151,089
Renault-Nissan Group Infiniti 2,152 1,103 1,116 2,441 3,337 3,748 3,784
Nissan 3,802 2,398 3,061 5,526 8,559 8,019 7,259
Samsung 109,221 59,926 60,027 64,024 63,267 105,566 113,319
Renault-Nissan Group Sub-total 115,175 63,427 64,204 71,991 75,163 117,333 124,362
Mahindra Group Ssangyong 38,626 47,700 63,972 60,677 60,316 54,055 74,659
BMW Group BMW 23,293 28,151 33,066 35,602 38,054 37,937 44,243
MINI 4,282 5,927 6,301 5,198 5,909 5,837 5,475
Rolls-Royce 23 24 29 56 80 91 108
BMW Group Sub-total 27,598 34,102 39,396 40,856 44,043 43,865 49,826
Volkswagen Group Audi 10,345 15,126 20,044 20,559 21,642 21,551 21,808
Bentley 102 135 164 131 170 188 191
Porsche 1,301 1,516 2,041 2,515 2,854 3,081 3,194
Volkswagen 12,436 18,395 25,649 20,518 22,198 23,455 23,365
Volkswagen Group Sub-total 24,184 35,172 47,898 43,723 46,864 48,275 48,558
Daimler Group Mercedes-Benz 19,534 20,389 24,780 25,675 26,365 32,853 34,444
Toyota Group Lexus 4,111 4,976 5,425 5,182 6,833 7,801 7,224
Toyota 5,020 10,795 7,438 10,237 13,502 15,183 13,901
Toyota Group Sub-total 9,131 15,771 12,863 15,419 20,335 22,984 21,125
Honda Group Honda 3,128 3,944 4,856 7,780 8,163 7,773 8,923
Ford Group Ford 3,060 3,865 5,625 4,299 4,637 4,445 4,973
Lincoln 1,124 1,261 1,589 1,108 1,407 1,454 1,443
Ford Group Sub-total 4,184 5,126 7,214 5,407 6,044 5,899 6,416
Tata Group Jaguar 1,016 1,197 1,901 1,583 1,953 2,076 2,131
Land Rover 1,383 1,916 3,103 3,122 3,496 3,690 3,886
Tata Group Sub-total 2,399 3,113 5,004 4,705 5,449 5,766 6,017
Fiat-Chrysler Group Chrysler 1,086 1,326 826 1,234 1,374 1,324 1,242
Dodge 118 3 87 18 21 21 20
Fiat 0 0 420 508 545 565 583
Jeep 2,054 2,794 3,290 2,105 2,227 2,257 2,217
Fiat-Chrysler Group Sub-total 3,258 4,123 4,623 3,865 4,167 4,167 4,062
PSA Group Citroen 3 255 476 414 344 349 373
Peugeot 2,628 2,405 2,776 2,391 2,563 2,749 2,956
PSA Group Sub-total 2,631 2,660 3,252 2,805 2,907 3,098 3,329
Geely Group Volvo 1,480 1,768 1,960 2,009 2,530 2,685 2,633
Fuji Heavy Subaru 664 627 0 0 0 0 0
Mitsubishi Motors Mitsubishi 33 62 115 0 0 0 0
Source: LMC Automotive "Global Automotive Sales Forecast (Quarter 1, 2014)
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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