Global Sales Of Hyundai Reached Ten Years Low
Hyundai Motor's global sales fell to their lowest in a decade in February as coronavirus concerns held customers away.
Hyundai of South Korea is the first major company to announce the month's revenues. In the coming weeks, Chinese and U.S. companies will be releasing their figures. For February, Hyundai announced preliminary sales of 275,044 vehicles, down 13 percent from a year earlier, with domestic sales plummeting 26 percent. In February 2010, it last registered lesser monthly sales than this. Affiliate Kia Motors announced a 5 percent decrease in global sales.
After rolling back in tax cuts on passenger cars at the start of the year, the South Korean auto manufacturer has been bracing for weaker demand, but the coronavirus outbreak has made it harder to do business. Samsung Securities analyst Esther Yim stated that people are scared of the coronavirus, and no one goes out ... dealership traffic itself is almost zero. As people don't tend to place orders for vehicles they haven't seen over the internet until the epidemic somewhat dies down, domestic sales will continue to be affected. The demand was bleak in China, where the virus originated, the world's top automotive market.
In February, around 80 percent of Hyundai dealerships in China did not operate. China is not yet entirely free of travel restrictions, so it'll be rough until April. The flu-like virus has wasted nearly 3,000 people, mostly in China, and roiled global financial markets as investors and policy-makers are bracing for a sharp knock to global growth. Outside the mainland, South Korea has the most infections. The cases in South Korea are concentrated in the fourth largest city of Daegu and the province of North Gyeongsang, home to about 20 percent of all suppliers in the region.
The coronavirus already weighs on South Korea's broader economy. A private survey showed the country's factory operation shrank further in February as it contracted export orders at the fastest pace in over six years. Earlier, when the automaker halted production at home, its largest manufacturing base, due to a shortage of parts from China, Hyundai flagged a hit at its manufacturing from the virus. Although the production has slowly resumed, uncertainties related to the infections remain. Last week, a worker tested positive for the virus at his factory complex in southeastern South Korean city 'Ulsan,' causing it to shut down a plant. The factory, which produces popular models like the Palisade SUV, resumed production Monday.