SEOUL, KOREA - Hyundai Motor's domestic sales division was shocked by its domestic sales performance for June 2013 when it sold 55,548 units, down 7 percent from a year ago. The year-on-year decline rate was the second highest after 11.5 percent marked in February 2013.
Key factors behind the decline in its domestic sales included the aggressive marketing of import brands, plus sluggish demand resulting from the ongoing recession. Japan's major carmakers cut their sales prices in May on the back of the depreciation of the yen, while European brands also reduced prices in June-July, thanks to the additional reduction in tariff rates resulting from the Korea-EU FTA.
Against this backdrop, Hyundai Motor decided to reduce the prices of its popular models, including Grandeur and i40, aimed at keeping its leading position in the domestic car market, following its January price reduction for some models, including Sonata.
Hyundai Motor announced that it will reduce the prices of its four models—Grandeur (3.3 Celebrity), i40, i40 Salon, and Veloster, effective from July 8. It decided to cut the prices of Grandeur to 39.93 million won from the current 40.93 million won, while cutting the prices of other three models by 300,000 won each.
