The sales of Hyundai Motor and its affiliate Kia Motors in China plunged 39 percent last month from a year earlier amid continued conflicts between Seoul and Beijing over the deployment of the U.S. THAAD antimissile system.

The two Korean automakers said on Sunday that they sold a combined 76-thousand vehicles in China in August, down 39 percent year-on-year.

Their combined sales in China plunged 52-point-three percent in the first half of the year, but the decrease slowed to 37 percent in July, raising hopes for a possible recovery. However, the figure expanded again to 39 percent in August.

In the January-August period, the two carmakers' combined sales plunged 44-point-seven percent to 577-thousand vehicles from over one million units a year earlier.

Market watchers expect the two automakers’ sales for the entire year are unlikely to reach seven million units due to the continued diplomatic tensions between the two nations.