When the car sales results of the first half of 2021 came out, it showed a surprising decline in B-segment SUV sales while C- and D-segment SUVs achieved double digit growth. It seems the Koreans' preference in SUV has shifted towards larger cars over compact ones.
In the first half of 2021, Korea recorded a total of 753,104 car sales. The amount is 5.9 percent less than the previous year. Out of that number, SUVs and RVs (Korea classifies 7-seater SUVs like the Hyundai Palisade and MPVs as RVs) made up 329,703 units.
While sales of sedans and hatchbacks fell as a whole, sales for SUVs have reportedly increased by 0.4 percent compared to the first half of 2020 (328,399 units). That might look like a small rise but Korea views it as a win considering sales of sedans in the first half of 2021 fell by 18.5 percent
While the world over is biting into the B-segment/ compact SUV market, Koreans on the other hand have shown a lack of interest in this segment. Sales for this segment fell by 37.6 percent; from 107,282 units in the first half of 2020 to 66,896 units in the same period in 2021.
The Kia Seltos still leads the sales in the segment selling 21,952 units from January to June 2021. But the number is still 24.7 percent less than 2020.
Coming in second is the Renault Samsung XM3, also known as the Renault Arkana in other markets. In previous years, sales of the XM3 used to match the number of Seltoses sold, however, the coupe SUV experienced an even larger drop in sales in 2021 selling only 8,086 units. Down by 63.7 percent.
The Hyundai Kona comes in after the XM3. The Kona is not having a good year either, selling only 7,568 units in the past six months; a drop of 59.3 percent.
Also read: Kia has more than 10 SUVs on sale! Here's a quick overview
Unfortunately for the model, reports of the Kona EV’s battery catching fire and the worldwide recall to rectify the issue have badly affected sales of the model.
This led to Hyundai discontinuing the Kona EV and introducing the Kona N in hopes that it will salvage the SUV’s reputation and sales.
B-segment SUV sales in Korea | |
---|---|
Model | H1 2021 Sales |
Kia Seltos | 21,952 |
Samsung XM3 | 8,086 |
Hyundai Kona | 7,568 |
But the Kona EV is not the only model in the segment that was discontinued due to poor sales. Kia has also discontinued the Kia Stonic and Kia Soul in Korea for the same reason.
Meanwhile, the all-new 2021 Hyundai Tucson led the sales in the C-segment/ mid-size SUV front. The model saw a 116.8 percent increase in sales, selling 28,391 units in the first half of the year. Hyundai only sold 13,098 units in the first half of 2020.
With Korea encouraging the move towards eco-friendly cars, it is not a surprise that the Tucson turbocharged hybrid variant is the most popular amongst buyers.
Other C-segment models did not share the Tucson’s success. The Kia Niro sold 8,688 units (28.5 percent less than 2020) while the Kia Sportage only sold 6,486 units, 32.9 percent less than last year.
Also read: Hyundai has 10 SUVs on sale globally and 3 of them are in the same segment, here’s a guide
However, the poor sales for the Kia Sportage are expected since Kia had been gearing up to launch the all-new fifth-generation Kia Sportage. Sales are expected to improve now that the new generation has officially gone on sale.
The only other C-segment SUV that saw an increase in sales compared to last year is the Hyundai Nexo. The fuel cell electric vehicle (FCEV) sold 4,416 units in the first half of 2021. That is 69.1 percent more than last year.
C-segment SUV 2021 in Korea | |
---|---|
Model | H1 2021 Sales |
Hyundai Tucson | 28,391 |
Kia Niro | 8,688 |
Kia Sportage | 6,486 |
While the B-segment SUVs suffered, the D-segment SUVs sales increased by 14.2 percent compared to last year. The Kia Sorento sits comfortably in the lead selling 39,974 units (5.6 percent more than last year) while the Hyundai Santa Fe follows with 21,723 units (16.8 percent less).
According to Motorgraph, the Sorento’s 1.6-litre turbocharged hybrid variant is the reason why the Kia is far ahead of the Santa Fe. The variant makes up 44.3 percent of the sales.
But things might change for the Santa Fe soon as Hyundai has opened order books for the new hybrid variant, so they expect the hybrid Santa Fe to help the model catch up by the end of 2021.
D-segment SUV sales in Korea | |
---|---|
Model | H1 2021 Sales |
Kia Sorento | 39,974 |
Hyundai Santa Fe | 21,723 |
Interestingly, though we wouldn’t lump the Genesis GV70 as a D-segment SUV since the GV70 is aimed at the premium market, the luxury SUV pipped the Santa Fe in sales. Genesis sold 22,701 units of the GV70 in the first half of 2021. That is almost 1,000 units more!
Also read: What’s Genesis? Meet the Korean Lexus and a recent addition to the Sultan of Johor’s collection
The trend is obvious that Koreans prefer SUVs over sedans and hatchbacks more. But what is surprising is the drastic shift towards larger SUVs. Don't forget that the Hyundai Tucson is also offered with a longer wheelbase option in Korea. This could have further fuelled its huge popularity since its launch.
The success of hybrids and even the Nexo is also proof that the country’s push to move towards eco-friendly cars is moving at the pace they expected. It will be interesting to see how things would pan out in the coming months as brands scramble to salvage the sales of their models.
Also read: Sales of Hyundai Sonata in Korea reach new low, Kia K5 sells 2x more, why so?
Will the hybrid Santa Fe manage to catch up with the Sorento? How many Ioniq 5s and Kia EV6s would have been sold by the end of this year since their launches in February and March respectively? Stay tuned.
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