Key Highlights

  • Record Low for 2026: Hyundai Motor and Kia’s combined retail sales in China fell below 10,000 units in September, a first this year.
  • Steep Drops: Hyundai’s sales plunged 47 per cent on-year to around 4,000 units, while Kia’s fell 31 per cent to 5,000.
  • Shrinking Share: Combined market share slipped to just 0.6 per cent, down from more than 10 per cent in the mid-2010s.
  • EV Push Struggles: China-specific electric SUV Elexio sold only 251 units in the first nine months of 2026; the Ioniq V sold 558 units in September.
  • Global Reset: Hyundai plans to add 1.27 million units of production capacity and launch over 100 new and updated models by 2030.

Hyundai Motor and Kia have hit a fresh low in China. The South Korean automakers’ combined retail sales in the country dropped below 10,000 vehicles in September, the first time this has happened this year, according to industry data released on Sunday.

Hyundai’s sales fell 47 per cent year-on-year to around 4,000 units, while Kia’s declined 31 per cent to 5,000 units, according to a Hana Securities report based on China Passenger Car Association (CPCA) data. Together, their sales fell 39 per cent to approximately 9,000 units, Yonhap news agency reported.

From Market Leaders to Fringe Players

The numbers tell a striking story of decline. In the mid-2010s, Hyundai and Kia together held more than 10 per cent of China’s passenger car market. Today, that share has shrunk to just 0.6 per cent.

The shift mirrors the rapid rise of Chinese domestic brands, which have come to dominate their home market with competitively priced cars and fast-moving EV technology, leaving many foreign automakers struggling for relevance.

EVs Haven’t Turned the Tide

The automakers have tried to win back buyers with electric vehicles designed specifically for Chinese customers, but the results have been underwhelming.

Hyundai’s China-specific electric SUV, the Elexio, sold only 251 units in the first nine months of this year, compared with 1,216 units in the last three months of 2025. The Ioniq V, Hyundai’s first China-specific model under its Ioniq brand, sold 558 units in September, a modest figure in a market where local EV makers sell in far larger volumes.

Why It Matters

China’s car market is the largest in the world, and a near-exit in terms of share means Hyundai and Kia must depend more heavily on markets such as the United States, South Korea, Europe and India. It also reflects a wider challenge for global carmakers: in China’s EV race, local players now set the pace on price and technology.

Hyundai’s 2030 Game Plan

Hyundai is looking beyond China to strengthen its global position. In August, CEO Jose Munoz announced at the company’s CEO Investor Day event in Seoul that it plans to expand overall production capacity by 1.27 million units by 2030, up from about 5 million vehicles at present.

The company also plans to roll out more than 100 new and updated models within the decade, including facelifts, partial redesigns and other variants, with 18 all-new models in the lineup. The strategy aims to boost competitiveness amid intensifying competition, particularly from Chinese rivals.

What Comes Next

Near-term launches include the Genesis GV80 hybrid in South Korea and the United States later this year, followed by an extended-range electric vehicle (EREV) in the first half of 2027. The Tucson SUV, one of Hyundai’s bestsellers, and its hybrid variants are also scheduled for launch in the second half of this year.

Whether these global moves can offset the China slump will be closely watched by investors and the wider auto industry.

(With inputs from IANS)