With their factories running to capacity around the world, the Hyundai and Kia brands expect their slowest growth in 12 years with global sales growing just 2.5% in 2015.
Under the Hyundai Automotive Group umbrella, the two South Korean brands comprise the globe’s fifth largest automaker and have seen sales growth slow – since record expansion in 2010 – as factories reach full capacity amid rising competition at home and in key markets.
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Two new factories have been announced for China although these will not start to come on line until the end of 2016. This year, Hyundai and Kia aim to sell 8.2m vehicles – 5.05m for Hyundai alone.
However, the brands have been conservative in their forecasts in the past. In 2014, sales rose 5.8% to 8m vehicles against a target of 7.86m. In a New Year speech to employees today (2 January), chairman Chung Mong-Koo said he expected to comfortably achieve sales targets this year.
The Hyundai Group expects the global vehicle market likely will grow 3.9% this year, up from a 3.5% gain in 2014, with emerging markets outside of Russia recovering and offsetting slow sales in the US and Europe.
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By GlobalData
