Hyundai-Kia Sales Plunge 62% in China

Car sales in China by Hyundai Motor Co. and its Kia Motors affiliate plummeted to 54,000 units last month from 142,000 vehicles in June 2016, according to the company.

The drop reflects continuing anti-Korean sentiment related to South Korea’s partial deployment of an anti-missile defense system provided by the U.S. The brands also face growing competition from domestic Chinese carmakers, especially in the fast-growing market for SUVs and crossover vehicles.

China normally accounts for more than 20% of global Hyundai-Kia sales, the Financial Times notes. But slumping demand there cause a decline in worldwide sales last month of 16% for Hyundai and 14% for Kia.

Hyundai operates four assembly plants in China and plans to open a fifth facility there later this year.