Hyundai Sees Slow Auto Market Amid Uncertainties

Published Date : Jul 13, 2015

Hyundai Motor Group anticipates ‘tepid growth’ for auto sales globally in the second part of the year 2015 due to economic uncertainties and weak Korean won.

Greece’s likely to leave the euro zone, dropping interest rate in the U.S., and weak economic growth in China are anticipated for the remaining part of the year, as stated by Chairman Chung Mong Koo in an email. Emerging nations will also suffer due to further weakening of the yen and euro, as further stated.

The chairman made predictions after sales dropped at Kia Motors Corp. and Hyundai Motor Co. and a weaker yen and stronger won gave competitive advantage to Japanese carmakers such as Toyota Motor Corp.

The two companies from South Korea are working on cutting costs and reduced production to help boost profits, and the company further planning to promote its sport utility vehicle class to capitalize on the recent boom worldwide.

The Chairman who heads both Kia and Hyundai further stated, that the company focuses on boosting sales capabilities. Both companies need to operate cohesively to create an effective nationwide sales support network to prepare the company for the future.

Another agency that is part of the group, The Korea Automotive Research Institute, forecasted the growth rate for the global auto industry to be 1.2% which was earlier predicted to be 2.6%, according to the statement.

In a statement made earlier in the month, Hyundai stated domestic and overseas sales dropped for third consecutive month in June.

Hyundai is aiming for a catch-up after having missed a worldwide boom for SUV, which was in part sparked by declining gasoline prices. Hyundai did not record any of its vehicles to have ranked among the top 10 selling SUVs in the first quarter in China, the biggest market for the vehicle class.