SEOUL, Aug. 7 (Korea Bizwire) – Hyundai Motor, South Korea’s top automaker, saw its sales in China plunge over 30 percent in July from a year earlier in the face of intensifying competition from local brands, industry and company sources said Thursday.
According to the sources, Hyundai Motor sold 54,160 cars last month, down from the previous year’s 80,169 units. This represented almost a half of its April sales which hovered at 100,000 units.
The sales drop is attributable to intensifying competition from local Chinese brands which appeal to customers with relatively cheap prices. Some estimated that Chinese cars are about 30-40 percent cheaper than imported vehicles including Hyundai Motor’s.
Hyundai Motor recently joined the price competition by providing cuts for some of its models. The automaker said that it lowered the prices of the Santa Fe and the Tucson by around 10 percent starting late last month.
The two sport utility vehicle models saw their first-half sales in China drop around 39.5 percent and 22.4 percent from a year earlier, respectively, affected by strong demand for local brands, industry data showed.