Hyundai Motor, Kia see sharp decline in sales in China, Japan

Hyundai Motor Unveils ‘NPX1’ Concept Model at Tokyo Auto Salon 2024. [Courtesy of Hyundai Motor]

South Korean automakers Hyundai Motor Co. and Kia Corp. have enjoyed robust sales in the United States and India in 2023 but they saw a sharp plunge in demand in China and Japan.

According to the Japan Automobile Importers Association (JAIA) on Monday, Hyundai Motor sold a total of 492 passenger vehicles in Japan in 2023, down by about 7 percent from 526 units, in which the automaker sold during the six-month period in 2022 when re-entered into the market in May of that year.

Hyundai Motor’s weak sales comes despite the growth in import vehicle demand. According to JAIA, sales of imported EVs in Japan exceeded 20,000 units for the first time last year, reaching a total of 22,890 units. Chinese EV manufacturer BYD Co. sold 1,511 units, three times the sales volume of Hyundai Motor.

Hyundai Motor and Kia also faced weak sales in China.

According to the data from the China Passenger Car Association (CPCA), the number of Dongfeng Kia cars sold was 84,000 units in 2023, down 10,000 units compared to 94,000 units in 2022.

Hyundai Motor and Kia is hoping to regain their footing in Northeast Asia by solidifying the brand image in Japan as a high-performance and validated carmaker and promoting affordable EV options in China.

Meanwhile, in response to increasing local demand and advancing electrification in India, Hyundai Motor is investing over 1 trillion won ($756 million) in its local factory.

On Monday, Devendra Fadnavis, Deputy Chief Minister of the Indian state of Maharashtra, posted on X, formerly Twitter, that the state attracted Hyundai Motor’s investment in the Talegaon region. Talegaon is the region where Hyundai Motor acquired the India plant of General Motors Co. (GM) in August last year. The investment involves approximately 700 billion rupees ($845 million).

Fadnavis added that the signing of an official memorandum of understanding (MOU) between the automaker and the Maharashtra state government will take place at the World Economic Forum (WEF) in Davos.

India’s automotive market has rapidly grown, becoming the world’s third-largest market after China and the U.S., with a sedan market size of about 3.8 million units annually.