Hyundai-Kia expects lower sales due to fully tapped capacity

Article by Anita Panait, on April 16, 2013

South Korean carmakers Hyundai and Kia are expecting their rapid growth to slow down drastically this year after revealing that they are already utilizing their production capacity to the fullest. Hyundai-Kia revealed that their assembly lines are already operating in full with no capacity expansions under way soon.

This means that Hyundai-Kia’s sales are limited by the current production capacity they have. The carmakers posted a 9-percent year-on-year drop in retail sales in the United States, excluding fleet sales, in the first quarter of 2013 to around 248,900 vehicles. On the other hand, their rivals all managed to hike their retail sales in the same period.

The 9-percent drop in first-quarter sales this year is in sharp contrast to the 27-percent first-quarter jump in 2012 and the 52-percent first-quarter increase in 2011. Rob King, Hyundai dealer in Raleigh-Durham, N.C., told Automotive News that it is now harder to sell a Hyundai than when Japanese carmakers were lacking inventory. He noted that they have been in a seller's position.

King remarked that competition now is “more closely aligned” to some of the value proposition that Hyundai has had, adding that their customers can elect to acquire what they want, not just what a dealer has. Hyundai-Kia posted a 3-percent drop in total US sales, including fleet, in the first quarter of 2013, when the overall market surged 6 percent.

Hyundai says that shortages of key models and popular trim packages like the low-end Sonata GLS sedan have hurt sales. They also are running short of small-volume vehicles. John Krafcik, CEO of Hyundai Motor America noted that Hyundai’s South Korean site that assembles the Veloster can equip only 20 to 30 percent of Velosters with turbocharged engines, although demand in the US would back a 70 percent rate.

Topics: hyundai, kia, sales

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 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