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South Korea June 2020: Anticipated end of tax cut triggers 41.2% market surge, Genesis breaks record again

The new G80 lifts Genesis to a third consecutive volume record at home.

The post-pandemic recovery takes a spectacular turn in South Korea in June with new car sales surging by a whopping 41.2% year-on-year to 203.818 units due to the anticipated end on June 30 of a temporary 30% cut in consumption tax on passenger cars. However it was announced at the very end of June that this cut would be extended until December 31 in order to boost consumption and support the auto industry. In any case, June 2020 is the first month above 200.000 sales since December 2015 (200.203) and the largest monthly volume outright in over 6 years. This fantastic result follows already strong results in both April (+7%) and May (+12.7%) and lifts the First Half 2020 volume up 7.2% to 925.612 units. Local manufacturers (+41.2%) perform exactly the same as foreign ones (+41.1%), selling 176.468 and 27.350 respectively. Year-to-date, locals are up 5.7% to 797.376 while foreigners soar 17.3% to 128.236. We have now revised our 2020 forecast up to 1.95 million (+10%) vs. 1.87m (+6%) a month ago

The Kia K5 advances to #2 year-to-date, only outsold by the Hyundai Grandeur.

In this very unusual context, the Top 14 brand all progress by at least double-digits, including top sellers Hyundai (+24.4%) and Kia (+41.5%) which add up to 63.9% of the market vs. 66.1% so far in 2020. Renault Samsung (+80.7%) reclaims the third spot it holds YTD while Genesis (+202.5%) aligns a third consecutive all-time volume record at 13.315 units, tripling its June 2019 score. Ssangyong (+18.6%) and GM Korea (+61.5%) ensure the Top 6 spots are all held by local carmakers. Mercedes (+15.7%) only needs a subdued uptick to remain the #1 foreigner, well above BMW (+23.6%), Audi up 3400-fold after a stop-sale order in 2019, Jeep (+47.4%), Volkswagen (+108.3%) and Mini (+116.1%). Porsche (+387%), Nissan (+190.1%) and Lamborghini (+250%) also stand out.

Lamborghini sales are up 250% year-on-year in June.

The four best-selling nameplates in the country are all boosted by new generation and at least double their sales year-on-year: the Hyundai Grandeur (+135.8%) firmly keeps the lead of the models charts ahead of the Kia Sorento (+170.9%) back to a record 2nd place, the Hyundai Avante (+100.4%) and Kia K5 (+194.3%), the latter advancing to #2 YTD. The Genesis G80 (+326.6%) is up 4-fold on June 2019 to smash its volume record anew at 7.905, with the Hyundai Palisade (+120.5%) and Samsung QM6 (+64.8%) also outpacing their home market in the remainder of the Top 10. The Kia Seltos (#12) tops recent launches above the Samsung XM3 (#13) and Genesis GV80 (#16) but all skid down the charts while the Chevrolet Trailbazer is back up 10 ranks to #22.

The Ford Explorer is back among the 10 best-selling foreigners.

The Mercedes E-Class (+16.9%) easily remains the best-selling foreign nameplate in South Korea with over 4.000 sales which places it just outside the overall Top 15, but this month the Audi A6 topples the BMW 5 Series (+1.4%) and VW Tiguan to rank #2 and surge to #4 year-to-date. The Mercedes C-Class (-5.3%) is up one spot on May to round out the Top 5 while the Nissan Altima, Lexus ES and Mercedes GLE all post their first Top 10 appearance this year. The Ford Explorer (+24.4%) is also back inside the June Top 10 but also YTD at #10.

Previous month: South Korea May 2020: Genesis scores first podium finish G80 up to record #5, market shoots up 12.7%

One year ago: South Korea June 2019: Hyundai Sonata repeats at #1 in difficult context (-7%)

Full June 2020 Top 30 All-brands, Top 55 All local models and Top 10 foreign models below.

South Korea June 2020 – brands:

3Renault Samsung13,6686.7%80.7%455,2426.0%51.3%34
6GM Korea9,3494.6%61.5%741,0924.4%15.4%56
22Land Rover3090.2%-49.8%192,3710.3%-43.6%1918
 –Total local manufacturers176,46886.6%41.2% –797,37686.1%5.7% – –
 –Total foreign manufacturers27,35013.4%41.1% –128,23613.9%17.3% – –
 –Total market203,818100.0%41.2% –925,612100.0%7.2% – –

South Korea June 2020 – local models:

1Hyundai Grandeur15,688135.8%177,60445.2%11
2Kia Sorento11,596170.9%337,86741.9%59
3Hyundai Avante10,875100.4%237,60517.7%66
4Kia K510,145194.3%446,824136.3%217
5Hyundai Sonata8,063-17.9%837,973-21.4%42
6Genesis G807,905326.6%522,48983.0%1325
7Hyundai Porter7,641-16.8%646,062-13.2%33
8Hyundai Palisade6,895120.5%1331,029-1.5%710
9Samsung QM66,23764.8%1524,94648.1%1212
10Kia Bongo5,65711.1%730,944-0.2%87
11Kia K75,65231.9%1226,72357.8%108
12Kia Seltos5,536new1029,149new921
13Samsung XM35,330new1122,252new14 –
14Hyundai Santa Fe4,901-40.2%926,104-40.8%114
15Hyundai Grand Starex4,40945.4%1717,542-26.0%1716
16Genesis GV803,728new1417,007new19 –
17SsangYong Korando Sports3,4129.4%2015,781-27.0%2015
18Kia Carnival3,286-44.4%1817,331-48.8%185
19Kia Morning3,260-6.9%1620,211-16.1%1511
20Hyundai Tucson3,1154.7%2213,098-34.8%2418
21Hyundai Kona3,076-15.4%1918,577-13.5%1614
22Chevrolet Trailblazer3,037new329,545new31 –
23Kia K32,879-25.4%2513,783-39.2%2213
24Kia Ray2,670-16.4%2113,284-18.7%2323
25Kia Mohave2,5481845.0%2811,008795.0%2635
26SsangYong Korando2,517125.9%269,61333.8%3027
27SsangYong Tivoli2,468-16.1%2710,292-49.2%2720
28Kia Sportage2,455-4.8%299,668-40.2%2922
29Chevrolet Spark2,425-5.5%2413,876-12.0%2119
30Kia Niro2,272-27.4%2312,154-18.5%2524
31Hyundai Venue2,175new309,889new2828
32Samsung SM61,44317.1%345,487-35.3%3230
33SsangYong G4 Rexton1,34938.9%315,169-16.2%3331
34Chevrolet Malibu1,095-7.4%333,750-45.3%3833
35Genesis G70981-15.9%354,715-46.8%3429
36Kia K9855-7.2%374,145-29.2%3634
37Chevrolet Trax817-21.9%383,778-39.4%3732
38Genesis G90701-49.3%364,675-57.9%3526
39Chevrolet Traverse574new422,238new4256
40Kia Stonic502-45.7%412,327-58.1%4136
41Chevrolet Colorado479new392,807new3955
42Hyundai Veloster44190.1%471,3114.8%4751
43Hyundai Nexo317-33.7%452,61269.0%4040
44Daewoo Labo30954.5%441,524-14.3%4445
45Kia Stinger305-1.9%501,396-35.9%4644
46Renault Samsung Captur292new40761new50 –
47Hyundai Ioniq280-60.7%482,055-23.2%4337
48Daewoo Alpheon28027.9%431,480-15.9%4547
49Chevrolet Equinox204-11.7%51738-31.9%5152
50Renault Samsung Twizy197-44.2%54421-59.4%5453
51Kia Soul166-67.0%49712-83.2%5238
52Chevrolet Bolt129-48.4%531,285-23.9%4842
53Renault Samsung Master123-55.9%469184.1%4948
54Hyundai i3059-29.8%55278-67.4%5554
55Samsung SM346-78.8%52457-79.4%5346
56Chevrolet Corvette/Camaro0-100.0%5668-32.7%5659

South Korea June 2020 – local models:

1Mercedes E Class4,02016.9%114,651-20.0%11
2Audi A62,061n/a44,49275.5%49
3BMW 5 Series1,4701.4%29,33841.3%22
4VW Tiguan1,268n/a35,908n/a320
5Mercedes C Class920-5.3%63,605-25.0%63
6Nissan Altima6816710.0%n/an/an/an/a77
7Lexus ES661-1.6%n/an/an/an/a7
8Mini Hatchback634150.6%9n/an/an/a13
9Mercedes GLE626n/an/an/an/an/a27
10Ford Explorer62324.4%n/a2,889-9.3%1012

Source: Manufacturers, Kaida

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