Hyundai-Kia Aiming for 10% of Chinese Market This Year

The Hyundai-Kia Automotive Group plans to increase sales at its Chinese joint ventures this year to capture 10% of the country’s light-vehicle market, a spokesman tells Ward’s.

Beijing Hyundai Motor Co. Ltd. is targeting a 22% sales increase to 360,000 vehicles. BHMC’s deliveries jumped 35% in January to 42,790 units, vs. year-ago, setting a new record for the month.

Dongfeng Yueda Kia Automobile Co. Ltd. aims to hike sales 30% this year to 185,000 vehicles.

DYK deliveries increased 15% in January to 17,607 units from year-ago.

“The January sales figures for both of our China operations are excellent, especially in a market that declined by 13.0%,” the spokesman says. “Hyundai gained significantly from sales of the new Chinese Elantra Yuedong sedan, which was developed specially for that market.

“China also reduced the luxury tax on vehicles with engines of 1.6L or less, from 10% to 5%, which gave small-car sales a boost.”

Contributing to BHMC’s strong January result was the new Elantra Yuedong, with 17,889 deliveries. The Yuedong was introduced last April. The previous-generation Elantra still is in production, but deliveries slipped 16% for the month to 15,885 units.

New Elantra Yuedong contributed to strong January results.

Both versions of the Elantra come with a 1.6L base engine and optional 2.0L mill.

The overall gain in China did little to buoy HKAG global sales performance, as January deliveries plunged 26.7% to 179,055 units.

Exports from South Korea plunged 47.4% to 51,705 units in January, and sales from all five overseas plants slipped 2.1% to 91,943 during the month. Hyundai’s domestic passenger-car sales slid 31.3%, while SUV deliveries plummeted 39.8%.