According to recent reports, the waiting period for new car models that had previously taken seven months has drastically reduced to within a month as of December. This change follows a decline in domestic sales for Hyundai and Kia, alongside decreasing sales for imported vehicles in Korea. In response, both companies have begun offering discounts and promotions this December.
Reports indicate that the waiting period for popular hybrid models from Hyundai and Kia, which previously took over a year, has now shortened to less than a month. The domestic market for imported cars, which seemed poised to surpass annual sales of 300,000 units, is also projected to decline for the second consecutive year.
Reports from Hyundai indicate that, despite a competitive launch of new vehicles by domestic and imported automakers in the Korean market this year, consumer purchasing power has significantly decreased due to economic recession.
Reports show that the delivery times for high-demand new models, including hybrids, have significantly decreased as of December. Notably, the waiting period for the Hyundai Sonata Hybrid has dropped from seven months to just three weeks.
The waiting period for the Hyundai Santa Fe Hybrid has also decreased from nine months last year to three months this December. The Kia Sorento Hybrid, a leading domestic SUV, has seen its waiting period reduced to eight months. Various factors contribute to this trend, but reduced purchasing power appears to play a significant role.
Reports indicate that the waiting periods for gasoline powertrains have also shortened. The waiting time for the Sonata 1.6 Turbo model has decreased from five months last year to three weeks this December, while the Santa Fe gasoline model's waiting time has dropped from three months to three weeks. The waiting period for the Sorento gasoline model has been reduced from two to three months down to five weeks.
Reports from Kia reveal that rising prices and reduced consumer spending have led to a decline in sales. In December, the five major domestic automakers reported that November sales totaled approximately 123,000 units, reflecting a 6.4% decrease compared to the previous year. Hyundai and Kia experienced declines of 12.3% and 4%, respectively.
Kia's reports indicate that as domestic sales continue to falter, automakers are implementing unprecedented discount policies this December. Hyundai plans to offer discounts of up to 5 million KRW (approximately $3,800 USD) on its flagship SUV, the Palisade, along with around 2 million KRW (about $1,500 USD) discounts on most other models.
Kia's reports also show that popular models such as the Sonata, Grandeur, Kona, and Santa Fe received a basic discount of 2 million KRW (about $1,500 USD) for all units produced before October. Genesis models, including the GV60 and GV70, offer discounts of 3 million KRW (approximately $2,300 USD) and 10% off for units produced before June, respectively. Commercial vehicles also provide substantial discounts, with the ST1 at 6 million KRW (around $4,600 USD) and the Porter offering up to 5 million KRW (about $3,800 USD).
Reports show that imported vehicle sales reflect a similar trend. From January to November this year, approximately 239,000 imported vehicles were sold in Korea. By the end of the year, the cumulative sales figure is projected to reach about 265,000 units, a decrease compared to last year's sales of approximately 271,000 units. Sales of gasoline and diesel vehicles have declined, while sales of hybrid and electric vehicles have increased.
Reports indicate that the cumulative sales figures for vehicle models show that the Mercedes-Benz E-Class and BMW 5 Series rank first and second, respectively, while the Tesla Model Y and Model 3 secure the third and fourth spots. In terms of brand sales rankings, BMW holds the top position, followed by Mercedes-Benz in second and Tesla in third.
