Hyundai Motor and affiliate Kia Motors are targeting a 6% increase in global vehicle sales to a combined 7m units in 2012. This is a slowdown after several years of double-digit growth, reflecting an expected industry-wide slowdown in global sales growth.
The group has expanded its global footprint significantly in the last decade. More recently it has been particularly successful in expanding its market share in North America, with key Japanese rivals struggling with supply chain problems following the huge earthquake in Japan last March, as well as high costs relating to the strong yen.
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Last year, Hyundai-Kia’s global sales increased by over 15% to 6.6mvehicles, with strong demand growth reported in North America, Europe and Asia.
Hyundai Motor Group CEO Chung Mong-koo, speaking at an internal group meeting, said production capacity remained tight and that it was unable to keep up with demand in key markets. Nevertheless, he confirmed that the group will focus most of its resources on quality management this year.
Hyundai Motor does have plans to start production at a third plant in China and its first in Brazil in 2012, however, although no new plants are planned for Kia.
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