April 27, 2024

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[THE INVESTOR]  Hyundai Motor Vice Chairman Chung Eui-sun on April 24 left for Beijing to address the carmaker’s faltering Chinese sales amid heightened political tension between Korea and China over the deployment of US-led THAAD missile system, according to media reports. 

Chung is planning to inspect Hyundai’s auto plants in Beijing, as well as reevaluate its business plans. Company officials weren’t available for comment. 

Hyundai and its sister company Kia Motors’ sales in China plummeted 52.2 percent on-year to 72,032 units in March. Separately, Hyundai saw its sales fall 44.3 percent, while Kia suffered a 68 percent decline. 

The unprecedented sales decline comes as Beijing remains set on overturning Seoul’s decision to deploy THAAD. Beijing calls the missile system a risk to its security despite the fact that it is designed to protect South Korea from North Korean threats. 

China is Hyundai’s largest overseas market. Up to 23.5 percent of its sales were from China in 2016, and 21.5 percent for Kia. 

In its latest efforts to win back Chinese consumers, Hyundai revealed its all-new ix35, an SUV released exclusively in China, at the Shanghai Auto Show that runs through April 28. Kia unveiled the K2 Cross SUV and Pegas compact sedan. 

By Ahn Sung-mi (sahn@heraldcorp.com)