Hyundai Motor and Kia's combined retail sales in China tumbled 39 percent year-on-year to approximately 9,000 units in September 2026, falling below the 10,000-vehicle threshold for the first time this year, according to a Hana Securities report based on China Passenger Car Association (CPCA) data. The figures underscore the deepening crisis facing South Korean automakers in what was once one of their most lucrative markets.

How Far Sales Have Fallen

Hyundai Motor's China sales plunged 47 percent on-year to around 4,000 units in September, while Kia's contracted 31 percent to approximately 5,000 units. The two brands' combined market share has slipped to just 0.6 percent — a dramatic collapse from over 10 percent recorded in the mid-2010s. This is the lowest combined monthly volume the two brands have posted in China so far in 2026.

EV Push Fails to Arrest the Slide

Despite rolling out electric vehicles specifically engineered for the Chinese market, the recovery has been elusive. Hyundai's China-specific electric SUV Elexio sold just 251 units in the first nine months of this year, a steep drop from the 1,216 units it moved in the final three months of last year. The Ioniq V — Hyundai's first China-specific model under its Ioniq brand — logged 558 units in September alone, offering a modest bright spot but far short of what would be needed to shift the broader trend. Analysts note that domestic Chinese EV brands have moved faster on software integration, pricing, and charging infrastructure, leaving foreign marques struggling to compete on home turf.

Global Expansion Plans Contrast With China Woes

The China numbers stand in sharp contrast to Hyundai Motor's ambitious global strategy. In August, the company announced plans to expand overall production capacity by 1.27 million units by 2030, up from roughly 5 million vehicles at present, and to launch more than 100 new and updated models over the same period. Hyundai Motor CEO Jose Munoz outlined the roadmap at the company's CEO Investor Day event in Seoul, citing intensifying competition — particularly from Chinese rivals — as the key strategic challenge. The expanded lineup will include 18 all-new models, alongside facelifts, partial redesigns, and other variants.

Upcoming Model Launches

On the product pipeline, Hyundai Motor plans to launch the Genesis GV80 hybrid in South Korea and the United States later this year, followed by an extended-range electric vehicle (EREV) in the first half of 2027. The company's bestselling Tucson SUV and its hybrid variants are also scheduled for launch in the second half of 2026. Whether these global launches can offset the structural decline in China remains an open question — and one that investors will be watching closely.