Increasing Sales Gap
Hyundai Motor Group's two auto units - Hyundai Motor and Kia Motors – ranked fifth in terms of global sales last year, but the gap with its competitors widened further due to lower sales.
According to industry sources on Feb. 12, Hyundai-Kia Motors sold a combined total of 7.88 million cars last year, coming in fifth in the global market. Its sales dropped 1.7 percent from a year earlier and the company fell short of its 8.13 million sales goal as well as the 8 million mark.
On the other hand, leading companies increased their sales, extending their lead with Hyundai-Kia Motors. Volkswagen, the No.1 player in the market, sold 10,312,400 cars, up 3.8 percent from a year ago, despite the Diesel Gate Scandal. This was largely due to the rapid increase in sales in China with 3.98 million units. The runner-up, Toyota, lost its No. 1 spot for four years in a row from 2012 owing to poor sales in the U.S. with 10.18 million units. However, its sales figure rose 0.2 percent from the previous year. GM came in third with sales of 9.97 million units and Renault-Nissan in fourth with sales of 9.96 million units.
Hyundai-Kia Motors also saw slow sales at the domestic market, which is worth 1.3 million cars annually, last year. The sales of Hyundai Motor dropped 7.8 percent, while the figures of Kia Motors decreased 1.4 percent. Due to fewer days operated caused by the strike, the group’s exports also declined. By contrast, Renault-Nissan extended its lead to more than 1 million units with Hyundai-Kia Motors by acquiring a 34 percent stake in Mitsubishi, which is in crisis owing to the scandal of manipulating fuel economy, and adding sales of Mitsubishi.
The outlook on Hyundai-Kia Motors for this year is not that bright as well. Its sales target is 8.25 million, which is a record high. The group reflected the increase in production at the No.4 and 5 plants in China and a plant in Mexico as they started operation. An official from the industry said, “Since both Hyundai Motor and Kia Motors are struggling with lower operating margins, the two companies are expected to ensure internal stability instead of sales expansion. The gap can be widened even further.”