Hyundai, Kia skid continues amid China, South Korea political tension, report says
China vehicle sales at South Korea's Hyundai Motor Corp. and Kia Motors Corp. both tumbled more than 60 percent year over year in April, two sources briefed on the matter told Reuters, marking the second straight monthly drop for the companies due to political tensions.
Hyundai saw sales skid 64 percent to 35,009 last month compared to a year earlier, the sources, who declined to be identified as the numbers were not public, said on Thursday.
Sales at affiliate Kia dropped 68 percent to 16,050 cars and light trucks.
A spokesman representing both automakers declined comment.
South Korean companies, from automakers to retailers and cosmetics firms, have been hit in China by a nationalist backlash over Seoul's decision to deploy a U.S. missile defense system. It is equipped with powerful radar capable of penetrating Chinese territory.
Chinese state media have reacted with anger and boycott threats, after South Korea's Lotte Group in late February approved a land swap with the government that allows authorities to deploy the U.S. Terminal High Altitude Area Defense system in response to North Korea's missile threat.
In March, Hyundai and Kia saw combined China sales slump by 52 percent from a year earlier. China accounts for about a quarter of their total global sales.
With a heavy reliance on sedans and a poor brand image in the world's largest auto market, Hyundai and Kia have already been losing market share to local Chinese brands that now market less expensive crossovers and SUVs.
Sales at affiliate Kia dropped 68 percent to 16,050 cars and light trucks.
A spokesman representing both automakers declined comment.
South Korean companies, from automakers to retailers and cosmetics firms, have been hit in China by a nationalist backlash over Seoul's decision to deploy a U.S. missile defense system. It is equipped with powerful radar capable of penetrating Chinese territory.
Chinese state media have reacted with anger and boycott threats, after South Korea's Lotte Group in late February approved a land swap with the government that allows authorities to deploy the U.S. Terminal High Altitude Area Defense system in response to North Korea's missile threat.
In March, Hyundai and Kia saw combined China sales slump by 52 percent from a year earlier. China accounts for about a quarter of their total global sales.
With a heavy reliance on sedans and a poor brand image in the world's largest auto market, Hyundai and Kia have already been losing market share to local Chinese brands that now market less expensive crossovers and SUVs.
