Hyundai, Kia market share at lowest ever

SEOUL — South Korea’s Hyundai Motor Co. and sister Kia Motors Corp. saw their combined domestic market share plunge to its lowest ever last month, as quality issues and a labor strike hit their image in one of their most lucrative markets.

The pair held 58.9% of their home market, the lowest since 2000 when the Hyundai Motor Group was launched, the group said on Friday citing industry data.

The share was 67.7% last year and 73.6% five years earlier, falling as free-trade deals led to more German imports.

South Korea is Hyundai’s third-biggest market by sales and is highly profitable due to strong sales of large and luxury cars.

But tepid reception for its newer saloon models came as the automaker was hit with its worstever factory strike and a US recall, denting consumer perception of the local champion.

Hyundai last year recalled some of its Sonata models in the United States due to defects in their Theta 2 engines, raising questions of safety back home.

Last month, Hyundai and Kia extended the warranty period for five Theta 2-equipped models in South Korea, though they said engines produced at domestic factories were not defective.