• Hyundai reported a 1.6% drop in global sales in October, attributing it to a slowdown in vehicle demand.
• Despite the slowdown, Hyundai plans to maintain sales volume of gasoline hybrid models and focus on high-end models.
• Kia, an affiliate of Hyundai, reported a 2.8% increase in global sales last month, thanks to robust domestic demand.
• Amid significant global economic changes, companies like Hyundai and Kia are adjusting their strategies to maintain competitiveness.

Hyundai Motor, South Korea's largest carmaker, reported a 1.6% drop in global sales in October, compared to the same period last year. The company attributed the decline to a slowdown in vehicle demand.

Hyundai sold 371,421 vehicles in October, down from 377,332 units a year earlier. While domestic sales rose slightly by 0.9% from 64,328 to 64,912 units, overseas sales declined by 2.1% from 313,004 to 306,509 units.

The company stated that the slowing pace of sales in major markets, volatility in exchange rates, high lending rates, and increasing geopolitical risks are expected to continue to weigh on sales results for the rest of the year. Hyundai, the maker of Santa Fe SUVs and Sonata sedans, plans to respond flexibly to changes in global markets by adjusting production and sales systems depending on local conditions.

Hyundai's Strategy Amid Market Slowdown

Despite the slowdown in electric vehicles, Hyundai plans to maintain the sales volume of gasoline hybrid models steady while focusing on increasing sales of high-end models. From January to October, Hyundai's sales dropped 1.6% to 3,447,171 autos from 3,504,368 in the same period last year. Domestic sales fell 7.5% to 580,517 autos in the first 10 months from 627,847 units a year earlier. Its overseas sales were down 0.3% to 2,866,654 from 2,876,521 during the same period.

Meanwhile, Kia, an affiliate of Hyundai Motor, reported a 2.8% increase in global sales last month from a year earlier, thanks to robust domestic demand. Kia sold 264,854 vehicles in October, up from 257,636 units a year ago. The company attributed the increase to strong overseas sales of the Sportage, Sorento, and Seltos SUVs. Domestic sales increased 7.1% on-year to 46,025 units last month from 42,960, while overseas sales were up 1.8% to 217,901 from 214,130 during the cited period.

Global Economic Changes and Their Impact

In other news, the global economy is experiencing significant changes, with the US economy remaining positive despite persistent inflation and geopolitical conflicts. The US presidential election is in full swing, and both major party candidates appear poised to pursue some degree of tariffs on foreign imports. These policies will likely impact prices faced by American firms and consumers.

In the banking sector, compensation expenses grew 4.1% year over year, to US$149.6 billion in the first half of 2024. This was mainly due to performance-linked rewards in revenue-generating businesses, such as trading, wealth management, and investment management. At the same time, banks are paying huge sums to attract technology talent in fields such as machine learning and generative AI.

In the shipping industry, disruptions to shipping pose downside risks to global trade growth. Some shipping companies have suspended services through the Red Sea and the Suez Canal following attacks on cargo vessels. Delivery times are lengthening as ships are being rerouted around the Cape of Good Hope, while spot rates for container shipping have increased, particularly between China and Europe.