Sonata may give way to new EV from Hyundai Motor at Asan assembly lines
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Long-time flagship in mid-sized category Sonata sold 26,230 units in the first five months of the year, down 12.3 percent from a year ago.
Sales of its once best-selling sedan have been skidding despite new releases of a facelift model in April last year and a high-performance version Sonata N in November as sedans in general lose ground to premium models and recreational vehicles.
Hyundai Motor and Kia sold a combined 61,820 units of mid-size sedans up to May this year, losing 13.4 percent from a year-ago period. Sales of Kia K5 declined 16.8 percent to 3,510 units, Genesis G70 6.4 percent to 3,495 units. Kia Stinger was the only winner in the segment, with sales up 45.3 percent to 1,585 units.
Hyundai Motor has decided to assign next Ionic 6 to 300,000-unit-capacity Asan plant instead of building new lines for EVs, suggesting assembly lines for less popular sedans could make way for EVs instead.
Hyundai Grandeur is still the best-selling model on home turf despite a 30 percent plunge in sales this year due to output disruption from global chip shortages.
“Ioniq 6’s size is similar to that of Sonata, making it easier to convert the lines,” said Lee Hang-gu, an analyst at the Korea Automobile Technology Institute. “Battery supply also is easier as LG Energy Solution’s battery plant is located in Ochang, North Chungcheong Province, near the Asan plant,” he added.
Hyundai Motor currently produces its Ioniq 5 at the Ulsan first plant. Genesis churns out its EV models at the Ulsan second plant, and Kia at the Hwaseong third plant.
Factory transition for manufacturing of EVs, however, could lead to a management-labor dispute. Eco-friendly models do not require engines, transmissions and other parts and thus need less labor force along the assembly lines.
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