Domestic and international car sales prices of Hyundai and affiliate Kia, leading South Korean automakers, have surged up to double in the past five years.
According to the business and quarterly reports of the two companies on May 20, the average selling price of Hyundai’s passenger cars in South Korea increased by 40.9% from 37.74 million won in 2019 to 53.19 million won in the first quarter of this year. The domestic selling price of recreational vehicles (RVs), including sports utility vehicles (SUVs), also rose from 35.43 million won to 52.23 million won during the same period, with an increase of 47.4% for RVs compared to passenger cars.
Prices also soared nearly twofold overseas, with local premiums and exchange rate effects contributing to the surge. Hyundai’s average selling price of overseas passenger cars, converted into Korean won, jumped by 94.6% from 32.98 million won in 2019 to 64.19 million won in the first quarter of this year. RVs increased by 98.8% from 34.59 million won to 68.77 million won during the same period.
Hyundai explained in its report that the disclosed selling prices are simple averages by product, and the average selling price increase is due to diversification and increased production costs of the Genesis model, a premium brand. Especially overseas, it is analyzed that the exchange rate, which rose by about 14% over five years, raised the selling price converted into Korean won.
Kia’s average selling price increase rate was lower than Hyundai’s during the same period. Kia’s domestic passenger car price rose by 4.3% from 32.59 million won in 2019 to 34.01 million won in the first quarter of this year. RV selling prices increased from 34.95 million won to 48.01 million won, with a growth rate of 37.3%. Overseas, passenger cars increased from 30.08 million won to 33.06 million won, up 9.9%, and RVs increased 47.5% from 40.30 million won to 59.43 million won compared to 2019.
