Korean carmakers kick off year-end discounts amid sluggish demand, Chinese competition

Korean automakers are implementing significant year-end discounts, up to 6.3 million won, to stimulate sales amid sluggish consumer demand and increased competition from Chinese EVs, as inventory remains high with declining sales across the market.

The Hyundai Grandeur Hybrid [HYUNDAI MOTOR]

Major Korean automakers kicked off aggressive year-end discount programs on Monday, with price tags showing markdowns of 2.2 million won ($1,490) on the Grandeur from Hyundai Motor, 6.3 million won on the Ioniq 9 and 5.4 million won on the Renault Grand Koleos.

These discounts aim to boost last-minute demand before a temporary cut in the individual consumption tax expires on Dec. 31. Some in the industry describe the move as a “tearful sale,” citing sluggish consumer sentiment and competition from cheaper Chinese EVs.

Hyundai Motor is offering discounts through Dec. 31 on 23 out of 25 passenger vehicle models — gasoline, hybrid and electric — excluding only the Casper, according to the auto industry on Monday. That’s nearly double the number of models included in the company’s Korea Sale Festa promotions last month.

Models with stagnating sales are seeing the biggest discounts. The Ioniq 9, an electric SUV released in February and base-priced from 67.15 million won, sold 8,094 units through November this year.

After averaging about 1,000 units per month through October, sales declined thereafter as the new-model effect wore off and EV subsidies ran out. This month, the Ioniq 9 will be discounted by up to 6.3 million won.

Popular models are also part of the discounts this time. The Avante — Hyundai’s top-selling passenger car this year with 72,558 units sold from January to November — is being discounted by up to 2.05 million won. The Grandeur, the brand’s flagship sedan, will be discounted by up to 2.2 million won.

Even steady sellers like the Santa Fe will see markdowns of up to 2 million won, while the flagship SUV, the Palisade, is being discounted by up to 1.26 million won.

The Hyundai Ioniq 9 [HYUNDAI MOTOR]

Kia is also offering discounts on older models, such as the K8, by 3.6 million won, and the EV6, by 3.9 million won, as well as on popular vehicles like the Sorento, which will be discounted by 1.9 million won for the gasoline version.

Year-end discounts are typically aimed at clearing inventory and meeting annual sales targets before the end of the calendar year.

But this year, more unsold stock remains due to weaker consumer sentiment and declining demand. For models like the Grandeur and Santa Fe, the buildup is also tied to upcoming facelift versions scheduled for release next year. Hyundai is also offering a 60-month interest-free financing option on the Grandeur.

“It’s similar to giving a 5 million won discount,” one industry insider said. “It’s been trimmed to the bare minimum margin.”

Falling sales in both the domestic and export markets are also a factor. Hyundai’s domestic sales in November this year were down 3.4 percent from a year earlier, while Kia’s fell 1.6 percent. Exports also declined — Hyundai’s by 2.2 percent and Kia’s by 0.8 percent.

The Renault Grand Koleos [JOONGANG ILBO]

“Given U.S. tariffs and the entry of Chinese EVs into Korea, the decline is relatively modest,” said Kwon Yong-joo, a professor of automotive transport design at Kookmin University. “But going into next year’s intense competition in the domestic market, automakers are likely choosing to move more units — even with slim margins — to maintain their edge.”

Mid-sized automakers are also rolling out major promotions. Renault Korea is offering discounts of up to 5.4 million won on the mid-size SUV Grand Koleos.

The Grand Koleos, launched in September last year, sold 53,310 units through November this year, making it a top performer for Renault Korea. But the new model boost has faded, with November sales dropping to 2,404 units — down 18.1 percent from October.

“Mid-sized automakers have relied on value-for-money pricing compared to Hyundai and Kia, but their position overlaps with Chinese brands,” said Lee Ho-geun, professor of future automotive studies at Daedeok University. “If more Chinese brands enter the domestic market next year, the situation could become even more difficult.”

The Renault Grand Koleos [JOONGANG ILBO]

GM Korea is also offering discounts of up to 5 million won on its North American pickup, the Colorado. KG Mobility is discounting its Musso Sports and Musso Khan pickups by 5 percent, or roughly 1.5 million won.

Still, many consumers argue that these discounts are conditional and do not translate into actual savings. For example, Hyundai’s Grandeur offers a 500,000 won discount only when buyers use its “Blue Save Auto” program, which applies Hyundai Card points toward installment payments.

The Grand Koleos offers a basic discount of 2.8 million won, but the full discount applies only if the buyer’s previous car was flood-damaged — a condition hard to meet.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY KIM HYO-SEONG [lim.jeongwon@joongang.co.kr]