Hyundai CEO blames South Korea sales slump on strike-driven disruptions

  • Hyundai attributed South Korea’s sales weakness to union strike-related production disruptions rather than vehicle competitiveness.
  • September sales fell 25.7% year on year to 49,022 vehicles, while January-September sales declined 16.3% to 448,181 units.
  • Hyundai will challenge Tesla and BYD without a price war, emphasizing product quality, dealer service, charging and residual values.

Hyundai Motor president and chief executive Jose Munoz attributed the automaker’s recent South Korean sales weakness to union strike-related production disruptions rather than vehicle competitiveness, while saying Hyundai can challenge Tesla, BYD and other imported electric vehicle manufacturers without entering a price war. Domestic sales fell 25.7% year on year to 49,022 vehicles in September, after declining 41.1% to 34,333 units in August; January-September sales totaled 448,181 vehicles, down 16.3%. The union staged 60 hours of walkouts in July and August, production halted for 120 hours and the resulting shortfall was estimated at more than 55,000 vehicles. Hyundai’s January-August sales were down 15%, while Tesla sold 76,776 Model Y vehicles, up 122.3%, and BYD sold 17,523 vehicles. Hyundai will emphasize its dealer and service networks, battery electric vehicle quality, charging performance and vehicle residual values rather than discounting. Munoz said production was back on track and highlighted Hyundai’s investments in Ulsan and Georgia, U.S. The company is also revising its China strategy through new electric and hybrid models, China-specific designs, greater cooperation with Beijing Automotive and export hubs for emerging markets.

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