South Korean media: Hyundai's sales in China hit a new historical low!
On July 12, South Korean media The Guru published an article stating that the Chinese joint venture Beijing Hyundai of Hyundai Motor set a "worst in history" sales record in the local domestic market in May. Once hailed as the "national car," Hyundai is gradually losing the favor of Chinese consumers, and its presence in the Chinese market is almost "0." However, export volume has shown an upward trend, indicating the possibility of recovery.
According to statistics from the China Passenger Car Association, Beijing Hyundai's sales in the Chinese domestic market in May were 7,134 units. This represents a decline of about 40% compared to the same period last year (11,831 units). The best-selling model was the new Elantra, with sales of 3,022 units, accounting for nearly half (42.3%) of total sales. The second was the locally strategic model Kus Tu, with sales of 1,302 units; Tuso sold 1,120 units; Sonata sold 1,041 units.
Beijing Hyundai, which once had annual sales of over 1 million units in the Chinese market and was hailed as a "successful example of a joint venture," has been facing a continuous downward trend in recent years. Analysts believe that in the domestic Chinese market, local brands emphasize price competitiveness, Japanese brands emphasize quality, while Hyundai faces difficulties due to a lack of strategy and an aging brand.
However, the upward trend in the export sector is at least a comfort. In May, the total sales of Beijing Hyundai in the Chinese market (domestic + exports) were 18,833 units. Considering its January sales of 16,810 units, February sales of 10,585 units, March sales of 16,825 units, and April sales of 14,964 units, monthly exports were approximately 5,000 to 10,000 units. This is attributed to increased demand in markets outside of China, such as Central and South America, the Middle East, and Africa, centered around export models.
However, some people are concerned that if it relies solely on exports and ignores the sluggish domestic market, it will not only have a negative impact on maintaining production bases in China in the long term, but also negatively affect the sustainability of the brand itself.
A South Korean industry insider said, "If we don't develop products that meet the needs of Chinese consumers and implement a localization strategy, it will be very difficult for Beijing Hyundai to rebound. In the local market, relying solely on price competitiveness no longer works. We urgently need a comprehensive strategic restructuring."
Original: https://www.toutiao.com/article/1837406890815559/
Statement: This article represents the views of the author.