Rolling Well in Mexico

Kia Motors’ plant in Mexico.
Kia Motors’ plant in Mexico.

 

Hyundai Motor Co. and its sister company Kia Motors Corp. recorded its highest sales figures ever in Mexico in the first half of this year, boosted by continuous sales growth of Hyundai Motor and high sales of Kia Motors’ K3, Rio and Soul as well as positive effects of its plant in Mexico. 

The Mexican auto market is the world’s eighth largest market for Hyundai and Kia Motors and it is also an important bridgehead to expand the markets to North America and Central and South America. Moreover, the two Korean automakers made record high sales in the market, surpassing leading market players such as Toyota and Ford. It is considered a good sign for the improvement in sales in the global market.  

According to the Mexican Automobile Industry Association, or AMIA, on July 24, Hyundai and Kia Motors sold a combined 61,616 vehicles in Mexico in the first six months, up a solid 53 percent from a year earlier. This is the first time for the two carmakers to exceed sales of 60,000 units in a half year after Hyundai Motor and Kia Motors entered the Mexican market in 2014 and 2015, respectively. The latest figure also increased more than 10 percent from 54,135 units sold in the second half of last year. Kia Motors sold 41,055 vehicles in Mexico in the first half of the year, up 74.7 percent from a year ago, while sales of Hyundai Motor grew 22.6 percent to 20,561 units in the market.

Hyundai and Kia Motors’ combined sales ranked fourth after Nissan, GM and Volkswagen, and are also 10,000 to 20,000 units higher than Japanese automakers, including Toyota with sales of 51,307 units and Honda with 43,727 units.

The two Korean automaker’s monthly sales have topped 10,000 units for four months in a row, showing a steady growth.

Hyundai and Kia Motors sold 10,342 vehicles in Mexico in March this year, surpassing the 10,000 unit mark, and 11,133 units last month, reaching a new record high every month. Their combined sales in Mexico increased by 15 times in two years after recording at 4,046 units 2015 when the two companies first combined the sales in Mexico.

Hyundai and Kia Motors’ combined market share also jumped. The two carmakers accounted for 8.3 percent of the total car sales of 743,051 units in Mexico in the first half of the year, surpassing the 8 percent market for the first time. The figure increased as much as 2.8 percent points from 5.5 percent in the first half of last year.

The increase in sales is largely due to Kia Motors’ plant in Mexico. After the plant started operation in September last year, it was expected to go through difficulties, including U.S.’ border taxes on Mexican imports. However, the plant has become a strong foothold that boosts global sales of Kia Motors by diversifying its markets to Central and South America, such as Brazil, Chile and Peru, as well as local market

In particular, sales of the K3, Rio and Soul, which are steady selling cars in Central and South America, showed a remarkable growth with over 100 percent, maximizing the effect of Kia Motors’ plant in Mexico.

If this trend continues, Hyundai and Kia Motors’ annual sales in Mexico this year are expected to exceed 100,000 units for the first time. The two automakers sold a total of 94,399 vehicles last year – 40,264 units in the first half and 54,135 units in the second half. When they maintain the same level of sales in the second half of last year, they will achieve sales of more than 100,000 units this year.

 

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