Hyundai Motor is on course to lose more than 62,000 vehicles in cumulative production from last month through 25 August, as its 40,000-member labour union escalates strike action amid deadlocked wage negotiations, according to industry sources familiar with the matter. Lost sales from the ongoing dispute are estimated at 2.6 trillion won (approximately US$1.85 billion), compounding pressure on the South Korean automaker already grappling with a tenth consecutive month of declining global sales.

Strike Escalation Timeline

The union staged four-hour partial strikes on Wednesday and Thursday, with a full-scale eight-hour walkout scheduled for Friday — the union's first complete stoppage in 10 years. The industrial action is then set to continue with additional four-hour partial strikes on the following Monday and Tuesday, stretching the latest round of disruptions across five days in total.

Where Wage Talks Stand

Management and the union held their 16th round of negotiations on Wednesday without bridging their differences. The union is demanding a monthly base pay increase of 149,600 won (approximately US$105.6) along with a performance-based bonus equivalent to 30 percent of the company's net profit for last year. Hyundai Motor's counter-offer includes an 80,000-won monthly base pay rise, a performance bonus of 350 percent of monthly salary plus 10 million won, and 15 shares of company stock — a package the union has so far rejected as insufficient.

Sales Already Under Strain

The strike escalation arrives at a particularly difficult moment. Hyundai Motor sold 318,454 vehicles globally in July, a fall of 5.1 percent year-on-year. Overseas sales declined 3.2 percent to 270,341 units, while domestic sales fell sharply by 14.4 percent to 48,113 units. The company attributed the weaker July performance to production disruptions from partial strikes that month and customers deferring purchases ahead of new model launches.

Broader Context and Industry Impact

The 10th consecutive month of falling global sales underscores the structural headwinds Hyundai faces beyond the labour dispute — including softening demand in key export markets. Notably, this is the first full-scale strike in a decade, signalling a breakdown in the labour-management relationship that had previously managed to avoid all-out stoppages. Industry observers warn that prolonged disruption could affect supplier chains and dealer inventories heading into the crucial year-end sales quarter.

What Comes Next

With negotiations stalled after 16 rounds and the union committed to a five-day action plan, a resolution before Friday's full strike appears unlikely. Both sides face mounting pressure — management from worsening production losses and the union from rank-and-file expectations after years of restrained wage growth. A mediator-led settlement or fresh management offer remains the most plausible near-term exit, but no such development had been announced as of Wednesday.