Hyundai-Kia forecast slight rise in car sales this year
SOUTH Korea’s largest motor firm Hyundai Motor and its affiliate Kia have forecast sales of 8.25-million vehicles this year amid hopes that new factories will tap into emerging markets.
The projected sales for this year mark a slight increase from the previous year’s target of 8.13-million, Hyundai Motor group vice-chairman Chung Eui-sun said yesterday.
Hyundai, which along with Kia forms the world’s fifth-largest vehicle making group, has seen profits falling for years amid slowing demand in China and a strong won that hurt its competitiveness overseas.
The group missed its annual sales target for a second year in a row last year when major strikes by South Korean workers hit production.
Hyundai-Kia jointly sold a little more than seven million units from January to November last year.
But it hopes to turn things around with a new factory to open in Chongqing, China, and the launch of new vehicles.
“We should strengthen production networks among 35 plants in 10 countries, including the Chongqing plant to open this year,” Chung said.
“We will also strengthen product lineup in luxury and environmentally-friendly cars and introduce more than 10 new vehicles this year,” he said.
New models – including sports utility vehicles popular in China – will also be produced at newly opened plants in Changzhou in China and Mexico, according to the group.
The Chongqing plant – Hyundai’s fifth plant in China – is aimed at exploiting the fast-growing mid-western region in the country, the world’s largest motor market.
The group has struggled to boost its market share in China, which fell to 8.1% last year following growing competition from Japanese rivals and homegrown Chinese brands.
In October, Hyundai Motor announced a sharp fall in profits for a third quarter, hit by lengthy industrial action.
Tens of thousands of workers at the firm’s plants in South Korea staged strikes for several weeks through July to October demanding higher wages.