Hyundai reports lowest monthly sales in decade

SEOUL: Hyundai Motor reported its lowest monthly global sales in a decade in February, as the coronavirus outbreak hurt demand, in what is the first major indicator of damage to the broader auto sector from the epidemic.

It turned in a preliminary sales figure of 275,044 vehicles for the month, 13% below 315,820 vehicles sold a year earlier.

Hyundai last reported sales lower than this in February 2010.

South Korea’s Hyundai, which with affiliate Kia Motors is the world’s No. 5 car maker, is the first major automaker to announce sales for the month.

Chinese and US players will turn in their numbers in the coming weeks.

The flu-like virus has killed nearly 3,000 and roiled global financial markets, as investors and policymakers brace for a steep knock to world growth.

South Korea has the most cases of infections outside the mainland, with the total at 4,212, affecting companies like Hyundai and Samsung Electronics.

“Inside South Korea is now more urgent than China, ” Korea Investment & Securities analyst Kim Jin-woo wrote in a note.

“With sluggish consumption affecting demand on top of it all, means auto sales are certain to be hit in the first quarter, and the impact expected to continue until at least the beginning of the second quarter.”

Hyundai was the first major automaker to flag a hit to its manufacturing outside China when it halted production at home, its biggest manufacturing base, in February due to a shortage of parts from China.

While the automaker has gradually resumed output, virus-related uncertainties remain.

Last week, a worker at its factory complex in the south-eastern South Korean city of Ulsan tested positive. — Reuters