The sedan manufacturer Kia is looking forward to a prosperous mew year, the company estimates a sale of 3.17 million vehicles this 2017. The South Korean car manufacturer is trying to exceed the previous year’s goal of 3.12 million sales, which the company fell short of achieving; Kia didn’t provide any details regarding the shortcoming.
Hyundai Motors Co also sees to increase their global vehicle sales; the company aims a 5.08 million mark for 2017, a slight increase on last year’s global sales. Both Hyundai and Kia make up for the fifth-largest auto manufacturer by sales, the companies combines sales target of 8.25 million this year is a 1.5 percent higher that of last years combined target of 8.13 million. Both car manufacturers didn’t disclose last year’s sales figure, analysts expect the second consecutive miss with their sales goals.
According to Hyundai Motor Group Chairman Chung Mong-Koo on his new year speech, “With the global economy continuing its slow growth, trade protectionism spreading and competition intensifying in the automobile industry, uncertainty is growing more than ever,” while Kia Motor Vice Chairman Hank Lee last Monday that the company hopes to provide a revival in this year’s growth after falling short of its 2016 sales target.
Hyundai and Kia Prepares for 2017
Both Hyundai and Kia are strategically adding their manufacturing in China and Mexico this 2017. The auto group reported a weaker year in the Chinese market, Hyundai’s largest market, due to the emerging local manufacturers offering cheaper and improved models that put them ahead against foreign brands. While Hyundai’s home sales also weakened from the workers’ strike from July to September that leads to a billion dollar lost in its production. Top executive Dave Zuchowski on Hyundai U.S.A. resigned last December because of the company’s underperformance in industry growth in their second-largest market.
Hyundai also announced late last year about their shift from manufacturing sedans to SUV. The SUVs are the company’s traditional strength, eyeing to boost the sales in the U.S. and compete with local SUVs at the same time. Although both Hyundai and Kia sees to improve their SUV lineups and the production and innovation of environmentally friendly cars, both companies are expected to introduce more than 10 new cars to meet the consumers shifting tastes.
Kia, on the other hand, looks to start their assembling in Pakistan soon. According to the company’s local partner Lucky Cement, who invested $115 million in establishing the company’s manufacturing plant. Although Kia has originally assembled their cars in Pakistan, but due to the dwindling sales, the company decided to seize the production in the country. The Korean car manufacturer tries to take a stand in Pakistan’s Japanese brand dominated markets such as Toyota, Honda, and Suzuki who also assemble their cars in Pakistan alongside local partners.
Hyundai and Kia’s group are eyeing to repeat their 2010 success where sleek designs and clever marketing help them achieve a double-digit growth.
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