Hyundai, Kia to rely on Mexico to achieve 2017 sales target
South Korean auto giant Hyundai Motor and its affiliated Kia Motors are targeting combined 2017 sales of 8.25 million vehicles worldwide, up from their 7.88 million goal for 2016, which analysts expect the companies to miss.
In his New Year message to employees, Hyundai Motor Group Chairman Chung Mong-koo acknowledged the turbulence besetting the auto industry. “With the global economy continuing its low growth, trade protectionism spreading and competition intensifying in the automobile industry, uncertainty is growing more than ever,” he said.
Despite the prevailing winds, the South Korean companies will be hoping that stabilization in Russia and other emerging markets will counterbalance anticipated slowdowns in Mexico, China and the U.S. The South Koreans’ 8.25 million total target is comprised of 5.08 million vehicle sales for Hyundai and 3.17 million for Kia.
The two companies are counting on new plants in China and Mexico, where they will gradually raise output, and introduction of models including a sport utility vehicle to attract buyers.
Hyundai and Kia are planning to introduce more than 10 new vehicles or revamped versions of existing models annually, the automakers said.
Hyundai will introduce a small SUV at home and plans to begin selling a high-performance line, while Kia will unveil a premium sports sedan, a China-specific SUV and Morning compact car. Genesis, Hyundai’s premium marque, plans to introduce its midsize luxury sedan G70 this year.