Kia Motors and Hyundai Motor are hoping to revive their sales in 2017 after missing their 2016 target, and have set a reportedly higher than expected new target.
The Hyundai Motor Company is part of the Hyundai Motor Group. The latter is reported as being amongst the world’s top five largest manufacturers.
Hyundai Motor Group is comprised of Kia Motors and Hyundai Motor Company. Hyundai Motor was founded in 1967. It is based in Seoul, South Korea and is an automotive manufacturer.
Kia Motors Corporation is also an automotive manufacturer. It was founded in 1944 and is also based in Seoul. It is ranked as the second largest South Korean manufacturer, just after its parent company.
The two companies have not been going through a good period. Last year, neither of the two reached their sales targets.
Final sales reports were released earlier this week, on Monday. For 2016, Hyundai had set a 5.01 million global sales target. Reports showed that last year, the manufacturer sold almost 4.9 million vehicles.
As it is, Hyundai aims at an even higher number in 2017. The company set a 5.08 million sales target for the current year.
Kia Motors set out to sell 3.12 million vehicles in 2016. It did not manage to reach its goal. Reports showed that the company moved about 3.02 million cars last year. For 2017, Kia set an even higher goal. It will try to move 3.17 million vehicles.
Kia Motors and Hyundai set a combined target of 8.25 million sold vehicles for 2017. Their combined 2016 numbers had an aim of 8.13 million vehicles.
As it is, the new year aims came somewhat as a surprise for some analysts. Given the missed 2016 targets, they were expecting a slightly lower projection for 2017.
Ko Tae-bong, a Hi Investment & Securities auto analyst, went to offer details. According to Tae-bong, the combined goal is somewhat higher than expected.
He considers that its accomplishment will depend on the new models. More exactly, on the performance of some of their new vehicles.
Weak demand is considered to be one of the main reasons for the unmet target. Emerging markets have not met their previous expectations.
However, the two companies are hoping to revive their sales. New company markets, such as Russia, are said to have stabilized. Kia Motors and Hyundai will also set out to boost vehicle supplies.
They will target the United States and Chinese auto markets. As it is, their sales number could rise this year. Both automakers will also reportedly be adding capacity in Mexico and China.
Chung Mong-koo, the Hyundai Motor Group Chairman, went to offer details. The chairman was reported to have sent out a New Year message to the company employees. In it, Mong-koo pointed out some facts.
According to him, the auto market uncertainty is growing. There are various contributing variables. The lower global economic growth is one such fact. Another is the spread of trade protectionism. The automobile industry competition is also said to have intensified.
As it is, the automakers are hoping to revive their sales growth. Following the announcement, both Kia Motors and Hyundai shares reported an increase. Reports also showed that they will be increasing their SUV cars lineup.
Hyundai Motor will reportedly release a new, smaller SUV sometime this year. It should be available in three areas. These are the United States, China, and Europe.
Image Source: Wikimedia
