According to the automobile industry trend (preliminary figure) announced by the Ministry of Trade, industry and Energy on June 11, domestic vehicle production in May was down 37% year-on-year. The spread of new coronaviruses caused stores in Europe, the United States, and India to shut down, and exports fell 58%. Although there are some signs of resumption of economic activity, it seems that it will take some time for the recovery of automobile demand.
By manufacturer, Hyundai and Kia were down 37% and 33%, respectively. Due to the decrease in demand, Kia has suspended production for one week not only during the consecutive holiday period in early May, but also in the latter half. Both companies had good sales in March due to new car sales, but the decline in production volume from April to May remains unstoppable.
The decline in domestic production of mid-sized manufacturers is even more serious. South Korea General Motors (GM) fell 41%, Ssangyong Motor fell 47%, and Renault Samsung, which had lost the production contract for the Nissan brand, fell significantly by 55%.
Due to the effects of coronavirus pandemic, car dealerships in the US and Europe were suspended, and exports fell 58% to 95,400 units. It is the first time in 17 years to break below 100,000. In June, doors of automobile dealers around the world are reopening, but the recovery of demand itself is slow and it seems likely that automakers will continue to suffer.
