Hyundai falters in Korea

Hyundai is struggling to maintain its hold in Korea’s domestic sedan market. The release of Renault Samsung Motors’ SM6 and General Motors Korea’s Malibu have hit both Hyundai and Kia hard, who have previously counted the midsize sedan market as safe ground, with the Hyundai Sonata and Kia’s K5. Sales of Renault’s SM6 totalled 6,751 units in March, just short of the Hyundai Sonata’s 7,053 sales. Hyundai managed to reclaim the top spot last month, but only due to a shortage of supplies for the SM6. General Motor’s Malibu gained 10,000 pre-orders in eight business days, when orders began on April 27, with 2,000 orders in the first day alone. Kia’s K5 took 17 business days to reach 10,000 orders. The popularity of the Malibu and SM6 is due in part to larger body sizes, compared to existing midsize sedans. The models offer a longer wheelbase, meaning that while it retains the look of a midsize sedan, inside, space is on par with that of full-size sedans. Engine downsizing has also contributed to their popularity, with smaller engines producing greater power, while significantly improving fuel economy and reducing emissions at the same time. The new models may rob Hyundai and Kia of their market leader positions, but the midsize sedan market is enjoying a boom after being pushed out following a surge in demand for SUVs. Midsize sedan sales made up about 22.3 per cent of Korea’s automotive market in 2011, but fell to 16 per cent last year, and again to 13.4 per cent in February. However, market shares rose to 16.5 per cent in March, following the launch of the SM6 in February. With the Malibu going on sale this month, midsize sedans are expected to occupy a larger portion of the market this month.