Strong in Emerging Markets
Hyundai Motor and Kia Motors are expected to record the highest-ever market shares in emerging markets such as Brazil, Russia, India and Mexico this year.
According to the automobile industry on Dec. 2, Hyundai and Kia sold 1,101,215 units in the four major emerging markets of Brazil, Russia, India and Mexico during the January-October period of this year, up 9.8% from a year before. Hyundai sold 824,545 units, up 6.8 percent from a year earlier while Kia 277,570 units, up 19.7 percent.
Accordingly, the two carmakers’ combined market share is expected to reach a record high of 14.7% during the January-October period of 2018. Their combined market share in emerging markets rose steadily from 9.4% in 2010 to 14.2% last year. The number of units sold is expected to reach a record high this year, eclipsing last year's.
Hyundai and Kia's sales in the four emerging markets grew annually with the construction of new factories in Russia in 2011, Brazil in 2012 and Mexico in 2016, up over 70% from 708,507 in 2010 to 1,211,791 last year. Analysts say that emerging markets will grow in importance for Hyundai and Kia as the two automakers have slumped in the US and China markets in recent years.
The proportion of Hyundai and Kia's sales in the four major emerging markets in their global total sales exceeded 10% for the first time by hitting 11.4% in 2007. Since then, this percentage rose steadily to 18.1% based on the cumulative total sales in the first ten month of this year. One out of five cars sold by Hyundai and Kia in the global market was sold in these emerging markets.
Among these four countries, Hyundai and Kia held the highest share in Russia. Hyundai and Kia's sales in Russia in the January-October period of 2018 grew 20.0% year on year to reach a record high of 23.1%.
In Mexico, Kia's plant utilization rate is expected to swell, leading the Korean automaker to a 10% market share for the first time this year. The company already recorded a 10.4% market share during the January-October period of this year. Kia Motors’s market share is expected to surpass 15% in India where its factory will begin to operate on a full scale in the second half of next year.