Hyundai Motor and its affiliate Kia Motors are recording a sharp increase in sales in emerging markets.
As they are struggling in Big 2 (China and the US), the rising sales in new markets is encouraging news to the two companies.
According to industry sources on May 14, Hyundai and Kia sold 427,408 vehicles in four major new markets including Brazil, Russia, India, and Mexico until April this year.
This is a 15.1% increase from 371,213 posted a year ago, a much bigger increase from global sales increase (1.9%). Also these new markets took 18.4% in their global sales, the largest ratio in the companies’ history. The industry is expecting their performance in emerging markets will decide whether the firms will achieve its sales goal for this year
The sales of Hyundai and Kia in four major markets have increased every year with the construction of new factories in Russia (2011), Brazil (2012), and Mexico (2016), recording 709,000 in 2010 to 1,212,000 in 2017. Their market share soared from 9.4% in 2010 to 14.2% in 2017, recording 14.8% in April this year.
If this trend continues, Hyundai and Kia are likely to set records in sales and market share in the four major markets. It is also expected that they will achieve their goal this year. Considering their growth rate in new markets, they set the sales goal of 7.55 million vehicles this year. It will be achieved by making up for the staggering sales in US and China with brisk sales in emerging markets.