Hyundai Motor’s global sales fell below 300,000 vehicles in August for the first time in more than four years after its first full-scale strike in a decade disrupted production. The setback also sharply narrowed the sales gap between Hyundai and smaller affiliate Kia.
Hyundai said Tuesday that global sales dropped 14.2 percent year on year to 288,574 vehicles. Domestic sales plunged 41.1 percent to an 11-year low of 34,333 units.
It was Hyundai’s first monthly domestic tally below 40,000 since February 2020, when the COVID-19 pandemic began disrupting production and demand.
Kia, meanwhile, increased global sales by 5 percent to 266,675 vehicles, driven by a 7.4 percent rise in overseas sales to 225,413 units. Its domestic sales fell 7.6 percent to 40,213, but still exceeded Hyundai’s by nearly 6,000 vehicles.
The two automakers also diverged in the key US market. Hyundai’s sales slipped 1.9 percent to 94,612 vehicles, while Kia edged up 0.9 percent to a record 83,793 for August. Their combined US sales fell 0.6 percent to 178,405 vehicles, marking the first monthly decline since April.
Industry officials attributed much of Hyundai’s slump to an estimated production loss of 55,000 vehicles caused by the labor union’s first full-scale strike in 10 years.
A dispute over wages, performance bonuses and an extension of the retirement age led to 60 hours of walkouts and 120 hours of production disruptions this year. Workers staged 30 hours of strikes in August alone, including a full-day walkout on Aug. 21.
“Hyundai suffered from sluggish demand across key markets, excluding the US, compounded by the impact of labor strikes,” Mun Yong-kwon, an analyst at Shinyoung Securities, wrote in a Wednesday report.
“Kia, on the other hand, is benefiting from a strengthened electric vehicle and hybrid lineup in Europe and North America.”
Hyundai’s labor union voted Tuesday to accept a tentative wage agreement, ending the dispute. The deal won support from 61.55 percent of participating union members.
With the strike over, Hyundai plans to ramp up production of key new models in an effort to regain sales momentum during the remainder of the year.
Its refreshed lineup includes the Grandeur sedan, the Avante compact sedan — sold overseas as the Elantra — and the Tucson SUV. The All-New Avante received more than 10,000 preorders in Korea on its first day, while the redesigned Tucson, the model’s first full change in six years, is scheduled for launch in the fourth quarter.
Hyundai is particularly counting on the new Tucson to bolster its performance in the US. The Tucson remained Hyundai’s best-selling model there in August, with 21,197 units sold. It was followed by the Elantra with 17,747 and the Santa Fe with 13,512.
Industry sources attributed the Tucson’s popularity to strong demand for its hybrid version and its broad appeal as a family vehicle. Since its US debut in 2021, the Tucson Hybrid had recorded cumulative sales of 233,793 units as of early 2026, making it Hyundai’s best-selling hybrid model in the country.
“Hybrid demand remained strong, helping electrified vehicles reach 34 percent of total sales and hybrids achieve a record share,” Hyundai Motor North America President and CEO Randy Parker said in the company’s monthly sales release.
By Byun Hye-jin (hyejin2@heraldcorp.com)
