This photo shows newly produced vehicles from Hyundai Motor in Ulsan waiting to be shipped to customers. (Yonhap)
SEOUL, Jan. 4 (Korea Bizwire) — South Korea’s five major automakers saw domestic sales in 2024 fall to their lowest level in 16 years, amid high interest rates and weakening demand for vehicles, including electric cars.
Despite the slump, Kia achieved a milestone as its Sorento SUV became the nation’s best-selling car—the first time a recreational vehicle (RV) has topped the list.
According to data from Hyundai Motor, Kia, GM Korea, Renault Korea Motors, and KG Mobility released on January 3, 2025, the companies sold a combined 7.95 million vehicles globally last year.
This marks a 0.6% decline from 2023, with domestic sales dropping 6.4% to 1.36 million units, the lowest since 2008.
Analysts attribute the decline to high interest rates and a plateau in demand for electric vehicles, often referred to as the EV “chasm.”
Among individual brands, Kia (up 0.1%), GM Korea (up 6.7%), and Renault Korea (up 2.6%) managed to grow their total sales, while Hyundai Motor (-1.8%) and KG Mobility (-5.7%) experienced declines.
Domestic sales proved especially challenging, with all but Renault Korea seeing sharp decreases. Renault Korea’s new model, the Grand Koleos, launched in September, drove an 80.6% increase in its domestic sales, surpassing 20,000 units in just four months.
This photo provided by Kia shows the company’s Sorento SUV. (Image courtesy of Yonhap)
The Kia Sorento led the domestic market with 94,538 units sold, followed by other RVs: the Kia Carnival (82,748 units), Hyundai Santa Fe (77,161 units), and Kia Sportage (74,255 units).
This marks the first time RVs occupied the top four spots in South Korea’s best-seller rankings. The Hyundai Grandeur sedan ranked fifth with 71,656 units sold, making it the highest-ranked non-RV vehicle.
For the first time in years, Kia overtook Hyundai in producing the nation’s best-selling car. However, no single model surpassed the 100,000-unit sales mark in 2024.
In December 2024, combined sales by the five automakers reached 649,255 vehicles, up 4.2% from the previous year, with domestic sales increasing by 3.9% and overseas sales by 4.3%. Despite the challenges, the industry shows signs of resilience as it enters 2025.
Kevin Lee (kevinlee@koreabizwire.com)
