Kia, Hyundai lead Febrauary’s sales gain in S. Korea

Hyundai Motor Co. and its affiliate Kia Motors Corp. on Monday reported robust gains in South Korean auto sales for February, while the country’s three other automakers saw their sales fall!

Overall, the nation’s five automakers, including GM Daewoo Auto & Technology Co., Renault Samsung Motors Co. and Ssangyong Motor Co., saw their combined sales rise 4.1 per cent annually to 386,415 units last month.

Hyundai Motor, the nation’s top carmaker, said its sales last month were up 12.1 per cent to 209,937 units.

Last month, Hyundai Motor’s domestic sales climbed 9.9 per cent to 47,769 units and exports gained 12.8 per cent to 162,168 units, helped by the success of new models.

Its affiliate Kia Motors posted a 2.2 per cent gain as its Morning mini-car continued to appeal to young drivers amid higher gasoline prices. The companies’ results excluded exports of kits.

Three smaller automakers, all controlled by foreign parent companies, fared worse than their South Korean rivals.

Sales of GM Daewoo, owned by the U.S. carmaker General Motors Corp., were off 2.4 per cent to 61,176 units, hit by a 10.5 per cent decline in domestic sales.

For years, GM Daewoo’s labor union has accused its management of ignoring the domestic market and urged it to introduce new models to win market share from Hyundai Motor and Kia Motors.

Renault Samsung, the South Korean unit of French carmaker Renault SA, reported its worst-ever February sales performance.

Sales of Renault Samsung plunged 34.9 per cent to 9,316 units with domestic sales declining 20.7 per cent to 7,030 units and exports plummeting 58 per cent to 2,286 units.

Ssangyong Motor, controlled by China’s Shanghai Automotive Industry Corp. (SSX:600104), also posted a 24.4 per cent decline in February sales. More news at the Kia blog.