Hyundai and Kia expect sales to grow only 2.5% in 2015

Article by Christian A., on January 5, 2015

With their own capacity limiting how many vehicles they could produce and sell, Hyundai Motor Co. and Kia Motors Corp. expect their weakest sales growth in nine years in 2015. According to Hyundai and Kia chairman Chung Mong Koo, the carmakers are bound to post a combined delivery growth of just 2.5 percent to 8.2 million vehicles this year -- the slowest since 2006.

The forecast was in line with the median estimate of 8.2 million units, as per five analysts surveyed by Bloomberg News. Chung remarked that the South Korean carmakers will "actively respond" to global economic uncertainties and a weaker yen that Japanese carmakers have been using to their benefit. He added that both Hyundai and Kia could "easily" achieve the target set for this year.

The South Korean carmakers are intending to hike output in Chine by 38 percent by 2018 to meet growing demand in the country. Hyundai and Kia have already launched updated versions of their Tucson and Sportage SUVs as they bid to maintain their market share in China.

According to Koh Tae Bong, an analyst at HI Investment & Securities Co., Hyundai and Kia are expected to have a slow 2015 as they have no room to hike output with no new sites or expansions planned for the year.

He added that maintaining market share and determining how well the biggest markets react to the new SUV models are keys for Hyundai and Kia for this year.

In separate filings, Hyundai and Kia are aiming for 2015 vehicle sales of 5.05 million and 3.15 million units, respectively.

Hyundai and Chinese partner BAIC Motor Corp. plans to expand output in China by 57 percent through building two new sites – in Chongqing and Cangzhou -- each having an annual output capacity of 300,000 vehicles. Kia, meanwhile plans, to hike capacity at its Jiangsu site to 450,000 units by 2016, from the current 300,000.

Topics: hyundai, kia, sales

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries