First positive spot on car sales map
Alex Gruzdev
Global Sales & Marketing Leader | Driving Market Disruption through Strategic Innovation & AI-Driven Solutions | Keynote Speaker & Author”
It is exciting to watch for different situations in the markets, as they are recovering in different ways. US car sales market is expected to drop more than 50% in April, but let's wait and hope for the best. For the meanwhile, there is one of the major worldwide car manufacturer, which already provide many data - Hyundai. We can have a look at how is the situation in the world. Total Hyundai sales worldwide in April decreased by 57%. Their domestic market is already recovering +6,5% April 2020 to April 2019, and Hyundai sells there just 0,5% less than in 2019 (KIA, which the same group increased by +20%). The most significant drop in the country was in February. Today all overseas sales of Hyundai dropped by over 70% - 88 037 cars VS 297 540 units the previous year. US market sales of Hyundai decrease by nearly 39%, with over 70% drop for fleet sales. But wait, this is not the worst figure. What do you think about switching over 42 000 car sales in April 2019 to 0 car sold in April 2020? Zero = no one car, none. It is the situation in India.
If we decide to find something positive in this, we will surely will. If keeping an eye on the South Korea market, we will see that after a significant drop in February and just start of the recovery in March, we will then see April, which is higher in total sales than the year before. For me, it is a piece of clear evidence that the car market will create the postponed demand during self-isolation and quarantine time, and as soon as the crisis ends, those people will arrive to buy the cars. The second good thing is that the markets could grow fast. One month of significant decrease (historic low, decades low, and even to zero), slow recovery next month, and then two-digit percentage growth. For the moment, the US market is expected to have the most profound drop in April and a small improvement in May, as the country starts to reopen. We can hope that by June all the country will be back at work, and we will see the same situation here as in South Korea.
Strategic Consulting
4 年HMC in Domestic market always had dragon support means for both private and fleet. In fact SK could be of good benchmark in terms of domestic OEM support versus import . I mean that in General the policy is very balanced: banning import with high end taxes it provides its citizens with high quality domestic products with very diverse power-train, as well as Fleets(taxi, Government, RAC etc) are enjoying very smart Government or Corporate suport in buying eco-friendly vehicles/ meanwhile carmaker giants ARE suppling the diverse powertrain cars with financial support to purchase them. So their quick return to growth muchly is connected with that balanced business model-Gov support, good product and diversity.