Sol. Hyundai Motor and its partner Kia said on Monday that sales of their vehicles continued to decline last month due to a global chip crunch on vehicle production. Hyundai Motor sales fell 12 percent to 308,788 vehicles from 349,184 a year ago, while Kia sales declined 5.8 percent to 238,538 from 253,287 during the same period, Yonhap News Agency reported.
Hyundai said the two South Korean carmakers will adjust vehicle production at their global plants and launch ‘new, competitive’ models to mitigate the impact of disrupted semiconductor supplies.
Global carmakers such as BMW and Volkswagen had expected semiconductor supplies to increase from this year, but shortages will no longer be common until 2024.
Hyundai’s domestic sales declined 15 per cent to 59,415 units last month from 70,219 a year ago, while overseas sales declined 11 per cent to 249,373 from 278,965.
Kia’s domestic sales declined 2 percent to 50,095 units from 51,128 last month, while overseas sales declined 6.8 percent to 188,443 from 202,159.
From January to April, Hyundai sales fell 10 per cent to 1,211,733 from 1,349,012 units a year ago, while Kia’s declined 2 per cent to 924,277 from 943,277.
Hyundai expects short supply of components due to the lockdown in Shanghai and high raw material costs induced by the Russo-Ukraine war to remain major woes for carmakers in the second quarter.
In 2022, Hyundai aims to sell 4.32 million vehicles, up 10 percent from 3.89 million units sold a year ago.
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