South Korea’s auto industry saw surge in January in production and sales for the domestic segment, surpassing figures from the same month last year. With Hyundai and Kia experiencing a surge in exports in January compared to last year, industry experts are now assessing whether this robust export flow can be sustained throughout 2024.
Strong production, sales:
Auto industry saw a strong start to 2024, with both production and sales rising in January compared to the same month last year. According to data from the Korea Automobile Mobility Industry Association, production of finished cars reached 358,423 units, marking a 16.9% y-o-y increase. Sales volume also grew, reaching 361,407 units, representing a 14.7% increase compared to January 2023.
Domestic sales reached 116,152 units in January, while overseas sales surged to an impressive 245,255 units. Notably, the combined export volume of Hyundai Motors and Kia climbed to 196,369 units, highlighting the strength of their global presence.
Hyundai, Kia lead:
Hyundai Motor company set an investment plan of KRW 12.4 trillion for 2024, aiming to sell 4.24 million vehicles this year. This represented a modest 0.7% increase from their 2023 sales of 4.21 million units. In addition, Kia Motors is also targeting growth in 2024, with a sales target of 3.2 million units. This represented a 3.8% increase compared to their 2023 sales of 3.08 million units.
Outlook
With automakers aiming for both profit growth and a faster shift towards electric vehicles through new global car launches and dedicated EV models, industry observers are keenly watching whether they can achieve higher sales in the coming year.
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