Hyundai, Kia Aim to Boost 2010 Sales by 17%

Hyundai-Kia Chairman Chung Mong-koo

By Jane Han, The Korea Times


Hyundai Motor and affiliate Kia Motors aim to boost sales by 17 percent this year driven by a recovery in the global economy and a series of new models.

The auto group, which sold a record 4.63 million vehicles last year, is targeting sales to rise to 5.4 million in 2010, Chairman Chung Mong-koo said in a New Year's speech to employees, Monday.

``Our teamwork helped turn a crisis into an opportunity when the global auto industry was at its darkest,'' said Chung, who recently ranked as U.S. magazine Motor Trend's 2009 third most influential figure in the auto industry.

He said Hyundai and Kia laid the foundation stone to emerge as world-class automakers by expanding their global market share and improving quality and consumer perception.

``Based on our achievements last year, let's work together to make 2010 a year of writing a new history,'' said Chung.

The 73-year-old chief said creativity and flexibility were necessary traits that the auto firm must hone to become a global leader.

Hyundai and Kia will put emphasis on enhancing price competitiveness, improving customer services, facilitating company-wide communication and boosting management efficiency as measures to respond to the fast-changing global auto industry, Chung said.

Despite a global downturn that dragged down automakers worldwide, Hyundai and Kia did better than their Japanese rivals on the back of fuel-efficient small cars and a weaker won that allowed them to spend more on marketing.

Hyundai sold a record 3.1 million vehicles while Kia sold a record 1.53 million, according to company figures.

Analysts forecast that no major risks are ahead for South Korea's largest car makers this year as new models, including the updated Sonata sedan and Tucson crossover, are set to help boost sales both at home and abroad.

``Hyundai will continue its sales momentum in the U.S. and emerging markets such as China and India,'' said Sohn Myung-woo, an analyst at Woori Investment & Securities, who added that a stronger yen will benefit Korean carmakers.

In 2009, Kia opened its first U.S. plant in Georgia, while Hyundai plans to add a new China factory that will produce 300,000 vehicles per year.