Korean Media: The Nightmare for Hyundai Motor Has Only Just Begun as Tesla and BYD Launch Offensives!

On September 14, South Korean media outlet "Today's Finance" published an article expressing concern over Hyundai Motor's declining performance. In July, its domestic market share plummeted to a record low of 33.6%. As imported vehicles from Tesla and BYD intensify their competitive pressure, Hyundai’s position is becoming increasingly precarious.

With Tesla Model Y and new Chinese-made BYD models entering the South Korean market through strong pricing competitiveness, and Hyundai itself facing issues with rising prices and delivery delays for its new Grandeur and Avante models, analysts predict that Hyundai’s market share could further decline in the second half of this year.

According to industry insiders, Hyundai’s domestic sales in July reached 48,113 units, down 14.4% year-on-year and 17.4% month-on-month. Cumulative sales through the end of July this year amounted to 364,826 units, a decrease of 11.3% compared to the same period last year.

The situation is growing more serious—despite the company launching new flagship models such as the updated Grandeur and Avante, sales declines have not been halted.

In July, the sales volume of Hyundai’s flagship sedan, Grandeur, was only 8,532 units, a 15.2% drop from the previous month. Sales for luxury brand Genesis also fell sharply by 34.0%, with cumulative sales dropping 24.4% to 52,454 units.

As a result, Hyundai’s domestic market share in July stood at 33.6%, widening the gap with Kia Motors (which holds a 39.9% share) by 6.3 percentage points.

The Chinese-made Tesla Model Y is priced at 49.9 million KRW. By last July, it had sold as many as 38,379 units. Driven by Model Y’s strong growth, Tesla’s cumulative sales in South Korea reached 66,376 units by the end of July this year.

Due to the launch of full self-driving capabilities, Tesla’s reservation volume in South Korea has already exceeded 50,000 units. Industry forecasts suggest Tesla’s sales in South Korea this year could surpass 120,000 units—about 40,000 more than last year’s top-imported car brand, BMW (77,127 units).

An analysis indicates that the Tesla Model Y will have the greatest impact on demand for the similarly priced new Grandeur model.

The new Avante has recently begun accepting reservations. With a price increase of approximately 4 million KRW, it is expected to face fierce competition from other imported electric vehicles, particularly those from Chinese automaker BYD.

The 2.0 Inspiration gasoline version of the new Avante is priced at 31.52 million KRW, while the 1.6 Hybrid Inspiration hybrid version is priced at 36.99 million KRW—comparable to the price of BYD Sealion 6 DM-i.

The front-wheel-drive version of the BYD Sealion 6 DM-i is priced at 37.5 million KRW in South Korea, nearly identical to the top-spec hybrid version of the new Avante. This vehicle is equipped with an 18.3 kWh iron-phosphate battery and offers a pure-electric range of up to 70 kilometers.

If the larger-bodied, plug-in hybrid-equipped Sealion 6 DM-i targets consumers in a similar price bracket, it may significantly affect the new Avante’s sales.

Ultimately, Hyundai’s new Avante must compete simultaneously against domestic compact hybrid vehicles like those from Kia, as well as imported plug-in hybrids and electric sedans.

A South Korean industry expert said: “In the past, when Hyundai launched new models, it could retain a significant portion of market share thanks to high brand loyalty and a compact product lineup covering various segments. However, today’s market has shifted so that consumers compare internal combustion engine cars, hybrids, plug-in hybrids, and fully electric vehicles at similar price points. If Hyundai lacks both product and pricing competitiveness, its market share could fall to around 20%.”

Original source: toutiao.com/article/1876290668911819/

Disclaimer: The views expressed in this article are solely those of the author.