South Korea’s largest and second-largest automakers Hyundai Motor Co. and Kia Motors Corp. that commanded monopolistic presence of over 80 percent in the local car market until a few years ago saw their share slip under 60 percent last month.

According to Korea Automobile Manufacturers Association (KAMA) on Friday, Hyundai Motor and its sister company Kia Motors accounted for a combined 58.94 percent of car sales in October, their worst performance since the group entity was formed in 2000.

Local sales were hurt by expiration of special sales tax and lengthy strike. Domestic shipment of Hyundai and Kia plunged 30 percent and 14 percent, respectively, in October from a year ago. Worse yet, Hyundai and Kia’s new and face-lift cars failed to woo local customers away from wider and cheaper choices of import brands. Share of imported brands gained 18 percent in October from a year-ago period.

Their minor local peers - GM Korea Co., Ssangyong Motor Co. and Renault Samsung Motors Co. - fared relatively better last month with flagship vehicles, including GM Korea’s Malibu, Renault Samsung Motors’ SM6 and Ssangyong’s Tivoli. The three automakers together made up 26.63 percent of the country’s October auto market, the largest since August of 2007.

Import cars claimed a bigger share at home, having sold 20,612 units at home, up 23 percent from 16,778 units last month. They made up 14.46 percent of the auto market in Korea in October. Notably, Mercedes-Benz sold as many as 6,400 units last month thanks to newly released premium sedan E-Class, the largest monthly shipment since it started operation in Korea.

On Friday, Hyundai Motor fell 0.37 percent, or 500 won ($0.44), to 136,000 won from the previous session, and Kia Motors slipped 0.36 percent, or 150 won, to 41,000 won.

By Park Chang-young

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]