Hyundai Motor Thinking Big in Chinese Market

Hyundai Motor has increased its sales goal in China 28 percent to approximately 730,000 units this year after posting double digit growth last year.

The carmaker’s cumulative sales in China are predicted to surpass two million units next month.

According to partner companies that entered China with Hyundai Motor, Beijing Hyundai Motor Company informed them that it revised its sales goal from 670,000 to 729,500 units for this year, up 28 percent from 570,309 last year.

Beijing Hyundai Motor Co. ranked fourth in China in sales growth last year with 93.6 percent, following by Shanghai Volkswagen (729,000 units), Shanghai GM (728,000) and FAW-Volkswagen (682,000). Beijing Hyundai Motor will begin construction of the third factory in Beijing with a capacity of more than 300,000 units, and build a production system able to churn out one million units by this year to aggressively enter the Chinese market.

Hyundai Motor said its Beijing subsidiary will surpass sales of two million units around April 8 since production there began in December 2002. In particular, sales of the mid-size sedan Elantra (called the Avante overseas) is expected to surpass one million units in the middle of April.

In addition, the Korean carmaker will introduce new models including the ix35 (the export name for Tucson) and RC (the follow-up model to the Verna) to China.

Hyundai Kia Automotive Group Chairman Chung Mong-koo told reporters before leaving for visits of Russia and the Czech Republic, “The domestic market is a little difficult but overseas sales are on the increase. I’ll do my best (to increase overseas sales).”

sukim@donga.com