Hyundai-Kia emerges as Top 5 OEM with 2010 sales of 5.7 M units; aims for 6.3 M units for 2011

Hyundai brand to go in new direction: "Modern Premium"

2011/02/15

Summary

 Hyundai-Kia Group shipped record 5.742 million units in 2010, an increase by 1.104 million units (23.8%) over the previous year. With this new record, the Group passed Ford (5.313 million units) and emerged as the world's fifth largest automaker (the first is Toyota (8.41 million units) followed by GM (8.38 million units), Renault-Nissan (7.28 million units) and VW (7.14 million units)).

 Hyundai refreshed its non-consolidated results, not including its oversea subsidiaries, in the year ended December 2010. It posted sales of 36.8 trillion won (about 33 billion US$) and an operating profit of 3.2 trillion won (about 2.9 billion US$), up by 15.4% and 44.4%, respectively, over the previous year. Kia also set new highs in sales of 23.3 trillion won (about 21.1 billion US$) and an operating profit of 1.7 trillion won (1.5 billion US$) on a non-consolidated basis, up by 26.3% and 46.8% year-over-year, respectively.

 Hyundai Group plans 2011 sales of a total of 6.33 million units- 3.9 million by Hyundai, and 2.43 million by Kia.



Hyundai's 2010 global sales up 23.8% to 5.74 mil units, aiming for 6.33 mil next year

 In 2010, Hyundai-Kia had a record-setting global shipment volume of 5.74 million units, an increase of 1.104 million units-equal to 23.8% year-over-year. Of this, Hyundai sold 3.613 million units, up by 16.3% over the previous year thanks to strong exports and overseas production, although sales in Korea were down by 6.2% to 658 K units. On the other hand, Kia enjoyed brisk sales of 483 K units in its home, up by 17.5% year-over-year, and global sales of 2.13 million units, up by 38.9% year-over-year.

 Hyundai-Kia aims for year-on-year growth of 10.2% in global shipment volume to 6.33 million units in 2011.

 

Hyundai-Kia's Shipment Volume

(Units)
  2005 2006 2007 2008 2009 2010 2011
Plan
Hyundai Korean-made vehicles 1,700,843 1,611,102 1,700,551 1,668,755 1,611,991 1,730,696 1,830,000
(incl.) domestic sales 569,721 580,288 624,227 570,116 701,469 657,897 700,000
(incl.) exports 1,131,122 1,030,814 1,076,324 1,098,639 910,522 1,072,799 1,130,000
Vehicles produced overseas 636,339 885,828 900,858 1,112,726 1,493,162 1,881,805 2,070,000
Subtotal 2,337,182 2,496,930 2,601,409 2,781,481 3,105,153 3,612,501 3,900,000
Kia Korean-made vehicles 1,105,841 1,140,734 1,114,451 1,056,400 1,142,038 1,400,293 1,500,000
(incl.) domestic sales 265,825 269,575 271,809 315,276 411,332 483,412 500,000
(incl.) exports 840,016 871,159 842,642 741,124 730,706 916,881 1,000,000
Vehicles produced overseas 243,182 266,090 245,505 342,836 391,568 729,655 930,000
Subtotal 1,349,023 1,406,824 1,359,956 1,399,236 1,533,606 2,129,948 2,430,000
Total Korean-made vehicles 2,806,684 2,751,836 2,815,002 2,725,155 2,754,029 3,130,989 3,330,000
(incl.) domestic sales 835,546 849,863 896,036 885,392 1,112,801 1,141,309 1,200,000
(incl.) exports 1,971,138 1,901,973 1,918,966 1,839,763 1,641,228 1,989,680 2,130,000
Vehicles produced overseas 879,521 1,151,918 1,146,363 1,455,562 1,884,730 2,611,460 3,000,000
Grand total 3,686,205 3,903,754 3,961,365 4,180,717 4,638,759 5,742,449 6,330,000
Sources: Hyundai Sales Performance, Kia, Monthly Sales Performance
NOTES: 1. Domestic sales mean sales in Korea. Exports mean exports from Korea, except KD parts.
2. For Hyundai, data in the vehicles produced overseas column are shipment volume from its four main plants in China, India, Turkey and the US except finished vehicle CBUs from Korean plants. For Kia, these are KD exports from Korea until 2006, and shipment volume from its three main plants in China, Slovakia and the US after 2007

 

Hyundai's export of Korean-made vehicles by region
(1000s of units)
  North America Europe Middle-east
and Africa
South America Others Total
2007 265 347 215 147 102 1,076
2008 281 318 235 157 108 1,099
2009 297 58 235 175 146 911
2010 288 104 291 220 170 1,073

Source: Hyundai, Sales Performance

 

Kia's sales by region on a retail basis
(1000s of units)
  South Korea US Europe China Others Total
2007 272 305 266 101 324 1,269
2008 315 273 225 142 419 1,375
2009 411 300 242 241 455 1,651
2010 483 356 258 333 657 2,088

Source: Kia Monthly Sales Performance

 



US market: Hyundai-Kia expands share to 7.7% with brisk sales of Hyundai midsize sedan Sonata and CUV Kia Sorento

 Hyundai-Kia posted 2010 sales of 894 K units in the US market, increased by 21.7%. Its US market share was up by 0.7 percentage points to 7.7%. Hyundai-Kia pressed hard on Nissan which has the sixth largest share of 7.8% in the massive market. The Group's sales were buoyed by the Hyundai Sonata midsize sedan, and the Kia Sorento CUV of which Kia started production in the US. In 2010, Hyundai and Kia sold 197 K units of the Sonata and 109 K units of the Sorento, respectively.

Hyundai-Kia's new vehicle sales by model in US

(Units)
  Models 2004 2005 2006 2007 2008 2009 2010
Hyundai Cars Accent (Verna) 43,258 41,012 34,735 36,055 50,431 68,086 51,975
Azera 16,630 17,645 26,833 21,948 14,461 3,808 3,051
Elantra (Avante) 112,892 116,336 98,853 85,724 94,720 103,269 132,246
Equus - - - - - - 196
Genesis - - - - 6,167 21,889 29,122
Sonata 107,189 130,365 149,513 145,568 117,357 120,028 196,623
Tiburon 20,125 20,600 17,382 14,073 9,111 8,587 -
Cars total 300,094 325,958 327,316 303,368 292,247 325,667 413,213
Light
trucks
Entourage - 0 12,206 17,155 8,470 3,433 -
Santa Fe 111,447 68,006 63,931 92,421 70,994 80,343 76,680
Tucson 7,074 61,048 52,067 41,476 19,027 15,411 39,594
Vera Cruz (iX55) - 0 - 12,589 11,004 10,210 8,741
Light trucks total 118,521 129,054 128,204 163,641 109,495 109,397 125,015
Hyundai total 418,615 455,012 455,520 467,009 401,742 435,064 538,228
Market share 2.5% 2.7% 2.7% 2.9% 3.0% 4.2% 4.6%
Kia Cars Amanti 19,894 18,668 9,593 5,522 3,614 3,704 281
Forte - - - - - 26,328 68,500
Optima 53,492 41,349 38,408 40,901 44,904 37,527 25,367
Rio 38,518 30,290 28,388 33,370 36,532 34,666 24,619
Soul - - - - - 31,621 67,110
Spectra/Sephia 44,004 56,088 72,557 73,474 68,465 47,114 272
Cars total 155,908 146,395 148,946 153,267 153,515 180,960 186,149
Light
trucks
Borrego - - - - 1,869 10,530 9,835
Sorento 52,878 47,610 50,672 36,300 29,699 24,460 108,985
Optima - - - - - - 2,015
Rondo - 0 594 26,020 28,645 14,206 3,588
Sedona (Carnival) 61,149 52,837 57,018 40,493 26,915 27,398 21,823
Sportage 120 29,009 37,071 49,393 32,754 42,509 23,873
Light trucks total 114,147 129,456 145,355 152,206 119,882 119,103 170,119
Kia total 270,055 275,851 294,301 305,473 273,397 300,063 356,268
Market share 1.6% 1.6% 1.8% 1.9% 2.1% 2.9% 3.1%
Hyundai-Kia Group total 688,670 730,863 749,821 772,482 675,139 735,127 894,496
Total market share 4.1% 4.3% 4.5% 4.8% 5.1% 7.0% 7.7%

Source: MarkLines' Statistics

 



In 2010, Hyundai and Kia have record setting sales and operating profit

 Hyundai refreshed its non-consolidated results in the year ended December 2010. It posted sales of 36.8 trillion won (about 33.3 billion US$) and an operating profit of 3.2 trillion won (about 2.9 billion US$), up by 15.4% and 44.4%, respectively, over the previous year. Its domestic sales were down by 2.9% over the previous year to 15.6 trillion won, although export sales were up by 34.1% to 21.2 trillion won, and this underpinned its business.

 Kia also set new highs in sales of 23.3 trillion won (about 21 billion US$) and an operating profit of 1.7 trillion won (about 1.5 billion US$) in the same fiscal year on a non-consolidated basis, up by 26.3% and 46.8% year-over-year, respectively. Kia enjoyed brisk domestic sales and exports, which were up by 32.1% to 9.2 trillion won and by 22.8% to 14.1 trillion won, respectively.

Hyundai's non-consolidated business overview

(Units in one billion won)
  2005 2006 2007 2008 2009 2010
Sales 27,384 27,335 30,620 32,190 31,859 36,769
Domestic sales 11,020 11,839 12,933 12,292 16,067 15,599
Export 16,364 15,496 17,686 19,898 15,792 21,170
Operating income 1,384 1,234 1,946 1,877 2,235 3,227
Operating income ratio 5.1% 4.5% 6.4% 5.8% 7.0% 8.8%
Income before tax 2,739 1,886 2,222 1,795 3,781 6,308
Net income 2,349 1,526 1,682 1,448 2,962 5,267

Source: Hyundai 2010 Business Result

Kia's non-consolidated business overview

(Units in one billion won)
  2005 2006 2007 2008 2009 2010
Sales 15,999 17,440 15,949 16,382 18,416 23,261
Domestic 4,472 4,867 4,852 5,015 6,953 9,182
Export 11,528 12,573 11,096 11,367 11,463 14,079
Operating income 74 (125) (55) 309 1,144 1,680
Operating income ratio 0.5% -0.7% -0.3% 1.9% 6.2% 7.2%
Income before tax 689 73 25 68 1,700 2,776
Net income 681 39 14 114 1,450 2,254

Source: Kia 2010 Business Results

Hyundai-Kia's consolidated business results

(Units in one billion won)
  2005 2006 2007 2008 2009 2008
(One million US$)
2009
(One million US$)
Sales 58,831 63,648 69,602 79,736 91,463 63,409 78,334
Operating income 2,294 1,797 2,848 3,072 5,620 2,443 4,813
Operating income ratio 3.9% 2.8% 4.1% 3.9% 6.1% 3.9% 6.1%
Income before tax 3,390 2,027 2,609 1,497 5,558 1,190 4,760
Net income 2,445 1,259 1,600 1,093 4,043 869 3,463
Net income ratio 4.2% 2.0% 2.3% 1.4% 4.4% 1.4% 4.4%
Source: Hyundai 2009 Consolidated financial statements
NOTES: 1. The USD-won exchange rate was 1,257.5 won per dollar in 2008 and 1,167.6 won per dollar in 2009
2. As of February 1, 2010, Hyundai-Kia Group has not announced its 2010 consolidated results.

 



Hyundai Brand to go in new direction: "Modern Premium"

 Hyundai revealed its new brand direction "Modern Premium" during the 2011 Detroit Motor Show. Hyundai will provide a value of inexpensive but quality products to customers who have never experienced or even expected such value.

 New brand concept: "Modern Premium"

Brand concept
"Modern Premium"
 Hyundai revealed its new brand concept "Modern Premium" during the 2011 Detroit Motor Show. Hyundai's new concept is based on the idea that high quality does not necessarily require a high price for a limited class; they will provide quality products at attainable prices to customers who have never experienced or expected such value.
Brand's statement
"New Thinking,
New Possibilities."
 Under the "Modern Premium" strategy, Hyundai will take "New Thinking, Now Possibilities" as the brand statement to provide customers with emotional value and to allow them to experience more than their expectations. This "New Thinking" has already been employed for the 2011 model Sonata and the Genesis.

Source: Hyundai Media News 2011/1/11, Financial Times 2010/12/16

 



Model plans: Hyundai and Kia to launch Sonata Hybrid and Optima Hybrid

 Hyundai will introduce the Sonata Hybrid with a fuel efficiency of 40 mpg (hwy) and 35 mpg (city) in the first quarter of 2011 in the US. Hyundai will also launch the 3-door Veloster within 2011. It was unveiled in the 2011 Detroit Motor Show. It has a unique layout-there are two doors on the passenger side. In the Korean market, Hyundai plans to launch the fifth generation of the large sedan Grandeur in 2011.

 Kia will launch the Optima/K5 hybrid in Korea and the US in the second quarter of 2011, which is a sister vehicle of the Sonata. Kia compact cars will be launched one after another. Kia will introduce the A-segment Picanto/Morning and the B-segment Rio/Pride in countries within 2011.

Hyundai's new models

Model name Year of launch Outline
New
Avante/Elantra
August 2010 The Avante/Elantra is the fifth generation of the global bestselling small sedan Avante. This is known as Elantra outside Korea. It has a 4530-mm length-larger by 25 mm and a longer wheelbase by 50 mm than the predecessor generation. The North American model is produced at the Alabama Plant.
New i10 October 2010
(Europe)
This is a new i10 model. The i10 Blue is equipped with a 3-cylinder 1.0-L engine. It emits only 99 g/km of CO2, and comes with a start & stop function and low rolling resistance tires.
ix20 Autumn 2010 The ix20 is a compact MPV belonging to the B-segment which was launched in the European market. It has an overall length of 4.1 m, and a relatively wider wheelbase of 2.615 m. As a result, it has a spacious compartment equivalent to the C-segment. Hyundai aims for annual sales of 55 K units of the ix20. It is produced at the Czech Plant. Kia's Venga is its sister model.
New Equus October 2010
(US)
The Equus is Hyundai's high-end sedan equipped with a 4.6-L V8 engine. Recommended prices are 58,000 dollars for the standard Equus Signature, and 64,500 dollars for the Equus Ultimate of which the rear bench seat is replaced with two bucket seats. The launch in Korea was March 2009.
Genesis Coupe Q4 2010
(Europe)
The Genesis Coupe is a coupe version of the Genesis. It is a RWD and has the options of a 2.0-L turbo engine (210JHP) or a 3.8-L V6 engine (303 HP). The launch in Korea was October 2008, in the US in February 2009.
Sonata Hybrid Q1 2011
(US)
The Sonata Hybrid is a hybrid version of the midsize sedan Sonata. It is equipped with a 2.4-L Atkinson cycle 4-cylinder engine, and a 270 V lithium polymer gel cell. The fuel efficiencies are 40 mpg (hwy) and 35 mpg (city). The Sonata Hybrid is sold at 25,795 dollars or higher.
Solaris January 2011
(Russia)
The Solaris is a 4-door subcompact sedan which is developed for the Russian market (a sister model of Accent/Verna). It is the first model that the St. Petersburg Plant will manufacture in Russia. In the latter half of 2011, its 5-door hatchback model will be launched. Hyundai aims for annual sales of 85 K units.
Concept RB Spring 2011
(Russia)
The coupe-like subcompact sedan Concept RB was rolled out in the 2010 Moscow Motor Show. It has been produced at the St. Petersburg Plant since January 2011.
Veloster 2011 The Veloster is a 3-door coupe. It has a unique door layout-the third door is on the rear passenger side. It is equipped with a 1.6-L direct injection 4-cylinder engine and dual clutch transmission (6-speed) for the first time as a Hyundai vehicle.
i40 2011
(Europe)
The i40 is a D-segment vehicle for Europe. It will be unveiled in the Geneva Motor Show in March 2011. Wagon and sedan versions will be launched.
New
Grandeur/Azera
2011 The Grandeur/Azera is the fifth generation model of the best-selling large sedan in Korea. It comes with a new Lambda II 3.0-L direct-injection gasoline engine. The wheelbase is expanded by 65 mm from the predecessor model. Hyundai plans to sell the Grandeur outside Korea as Azera, starting in 2012.

Source: Hyundai News Release 2010/8/3, 8/25, 10/01, 2011/1/11, 2011/1/13, Hyundai US News Release 2010/9/20, 10/19

Kia's new models
Model name Year of launch Outline
New Optima/K5 May 2010
(Korea),
January 2011
(US)
The Optima/K5 is the third generation midsize sedan, which is a sister model of the Hyundai Sonata. It is both longer and wider but lower than the previous generation. It was launched under the name of K5 in Korea in May 2010 and Optima in the US in January 2011. In China, a local model will be rolled out under the name of Optima in March 2011. In Europe, it will be launched under the name Magentis in July 2011.
Optima/
K5 Hybrid
Q2 2011 The Optima/K5 Hybrid is the Kia's first gasoline hybrid car based on the midsize sedan Optima. It will be launched in the second quarter of 2011 in Korea and the US.
New
Picanto/Morning
January 2011
(Korea),
April 2011
(Europe)
The Picanto (Morning in Korea) is a new A-segment compact city car. The car body is larger than the previous generation, and the trunk space is expanded by 27%. The Picanto/Morning is sold in 3-door and 5-door hatchback models. It is equipped with 1.2-L 4-cylindar engine and realizes a fuel efficiency of 4.2 to 5.9 L/100 km. Its derivative model will be launched in Korea in the third quarter of 2011.
New Rio/Pride September 2011
(Korea),
April 2011
(Europe and US)
A rough drawing of the next generation B-segment Rio (Pride in Korea) was uncovered in January 2011. It is both longer and wider but lower than the current model. It will be rolled out in the Geneva Motor Show in March 2011 as a plan. The Chinese model will be launched in June 2011.

Source: Kia Immediate Release 2011/1/12, 1/26、Kia 2010 Business Results

 



Hyundai unveils FCEV and EV concept subjected to verification test

 Hyundai unveiled the third generation fuel cell model of the Tucson ix Fuel Cell Electric Vehicle subjected to a verification test in December 2010. It is to attempt commercial production of the FCEV from 2015. Hyundai also rolled out EV BlueOn in September 2010. Hyundai will conduct a verification test on 30 of the BlueOn with the Korean Government, aiming to develop battery charging infrastructure. Kia presented a super mini three-seat EV Kia Pop concept in September 2010.

Hyundai's 3rd generation FCEV, Tucson ix Fuel Cell Electric Vehicle

Outline Hyundai unveiled a third fuel cell vehicle, the Tucson ix Fuel Cell Electric Vehicle (FCEV) in December 2010. It will start a verification test from 2011 and limited production from 2012, attempting mass production from 2015.
Performance The FCEV is able to travel 650 km per charge. It hits a top speed of 160 km/h, and its engine turns over at as low as minus 25 degrees Celsius.
Fuel cell The fuel cell delivers 100 kW, equipped with a tank of 5.6 kg hydrogen gas (the maximum fill pressure is 700 bar).

Source: Hyundai News Release 2010/12/22

Hyundai's EV BlueOn

Outline Hyundai unveiled its first electric vehicle, BlueOn, in September 2010. It is based on the compact hatchback i10. Hyundai invested 40 billion won in development of the BlueOn in the past year.
Verification test Hyundai will conduct a verification test on 30 of the BlueOn with the Korean Government until August 2012. It aims to develop and test battery charging infrastructure.
Overall length,
width and height
3585-mm length, 1595-mm width and 1540-mm height
Battery Lithium polymer gel battery (a storage capacity of 16.4 kWh)
Charging time Charging from home outlet (220 V): 6 hours (full charge)
Rapid charging (380 V): 25 minutes (80% charge)
Motor Delivers 81 ps (61 kW) and a torque of 210 Nm at maximum.
Driving performance Maximum speed of 130 km; and acceleration: 13.1 seconds from 0 to 100 km/h
Production plan Hyundai will start limited-production of the EV from 2011, and produce 2500 units by the end of 2012 to deliver to the Government.

Source: Hyundai News Release 2010/9/16

Kia Pop EV concept

Outline Kia unveiled a three-seat super mini Kia Pop EV Concept in the Paris Motor Show in September 2010. The body is monochrome and uniquely designed that the windshield reaches the roof top.
Motor Delivers 60 ps and a torque of 190 Nm at maximum
Driving performance Maximum speed of 140 km/h, and able to travel 160 km per charge.

Source: Kia Immediate Release 2010/9/30,

 



Hyundai breaks ground for a 3rd plant in China, while Hyundai's Russian plant and Kia's US plant start operations

 Hyundai-Kia is expanding plants abroad. Hyundai broke ground for a third plant in China with an annual production capacity of 400 K units near Beijing in November 2010. On the other hand, it started commercial production at the Russian Plant in January 2011. Kia also started commercial production in the US plant in February 2010.

China: Hyundai breaks ground for its 3rd Plant, while building an AT Plant in Shandong

Third Chinese plant Beijing Hyundai Motor Company, a 50-50 venture between Hyundai and Beijing Motors (BHMC), broke ground for the third plant near Beijing in November 2010. It will be completed in July 2012. It will have an annual production capacity of 400 K units. Hyundai's production capacity will reach one million units per year by 2012 including the existing first and second plants. There are plans to produce compact cars or midsize vehicles for the Chinese market.
AT plant Hyundai-Kia started building a transmission plant, Hyundai Powertech Automatic Transmission (Shandong) Ltd. in Rizhao city of Shandong province in December 2010. Hyundai invested a total of 290 million Yuan. The plant will produce automatic transmissions for passenger vehicles with an annual production capacity of 800 K units. The first construction (an annual production capacity of 400 K units) will be completed in December 2011.

Source: Hyundai News Release 2010/9/16, 11/30 and others

Hyundai starts production at its Russian Plant

Hyundai opened its Russian Plant (Hyundai Motor Manufacturing Rus (HMMR)) in September 2010, which stands in St. Petersburg. The plant was used for test production until the end of 2010. It started commercial production from January 2011. HMMR aims to produce 105 K units per year in 2011, and is expecting to have annual production of 150 K units in 2012. It plans to produce the subcompact sedan Solaris and RB both of which were developed for the Russian Market, and Kia's compact car Rio.

Source: Hyundai News Release 2011/1/19

US: Kia starts operation of US Georgia Plant

In February 2010, Kia started full operation of the Georgia Plant (Kia Motors Manufacturing Georgia (KMMG), Inc.) which is Kia's first US plant. Kia invested one billion dollars in the plant with a production capacity of 300 K units. It has been manufacturing the CUV Sorento since November 2009.

Source: Kia Press Release 2010/3/2



Mid-term Production Forecast by IHS Global Insight

Hyundai : Light vehicle production by Country (IHS Global Insight Forecast)

(Unit)

  Brand 2008 2009 2010 2011 2012 2013 2014 2015
SOUTH KOREA HYUNDAI 1,646,007 1,576,868 1,830,288 1,863,396 1,937,111 1,952,801 1,976,385 1,949,613
KIA 1,049,749 1,136,333 1,262,903 1,391,480 1,481,060 1,458,087 1,425,932 1,452,668
CHINA HYUNDAI 312,697 601,757 710,055 786,700 849,123 855,300 815,033 813,283
KIA 139,067 244,068 320,328 338,183 349,764 375,149 373,755 386,989
TAIWAN HYUNDAI 5,977 5,327 9,207 14,075 19,643 21,866 20,460 20,367
THAILAND HYUNDAI 94 15 0 0 0 0 0 0
INDONESIA HYUNDAI 2,672 2,723 5,357 12,505 23,206 24,072 22,423 21,184
KIA 6 2,518 900 1,066 1,203 1,317 1,508 1,656
MALAYSIA HYUNDAI 7,144 3,173 6,616 8,853 9,766 9,892 9,870 11,043
KIA 9,737 9,461 6,961 11,828 11,420 10,844 11,411 10,917
INOKOM 284 490 1,089 770 765 785 787 849
INDIA HYUNDAI 486,052 558,558 611,907 578,790 578,950 528,299 504,823 566,081
PAKISTAN HYUNDAI 5,514 2,154 1,505 2,128 2,350 3,145 3,860 4,205
CZECH REPUBLIC HYUNDAI 12,050 111,036 153,022 191,771 169,297 191,574 203,920 195,765
KIA 0 5,164 47,969 55,011 49,959 47,345 45,906 41,529
SLOVAKIA HYUNDAI 0 32 75,479 83,603 82,648 71,805 67,787 59,920
KIA 216,549 151,437 150,668 157,735 153,062 182,443 199,738 192,362
TURKEY HYUNDAI 83,036 48,830 76,446 102,785 93,924 88,076 66,546 67,881
RUSSIA HYUNDAI 100,235 13,154 15,184 58,178 68,033 66,187 85,268 90,183
KIA 69,902 37,755 79,294 86,467 97,044 103,632 110,196 114,042
UKRAINE HYUNDAI 33,897 4,575 7,172 13,964 20,333 23,013 27,901 32,148
KIA 26,318 4,796 4,188 7,565 11,282 11,932 14,365 16,743
KAZAKHSTAN KIA 0 0 569 1,652 2,116 1,826 1,975 2,228
IRAN HYUNDAI 17,075 5,527 13,444 13,854 16,335 23,824 25,464 26,711
KIA 510,848 557,805 236,638 96,129 61,931 25,927 30,463 31,074
UNITED STATES HYUNDAI 237,042 195,561 324,572 404,954 473,796 499,309 488,509 503,574
KIA 0 15,500 107,618 112,728 174,692 203,997 210,669 207,102
MEXICO HYUNDAI 0 0 0 0 0 57,660 127,535 127,165
KIA 0 0 0 0 0 32,665 67,491 63,305
BRAZIL HYUNDAI 0 6,814 20,524 25,997 41,539 96,067 102,622 105,935
ECUADOR KIA 11,514 6,634 1,366 1,312 1,360 1,294 1,171 1,281
VENEZUELA HYUNDAI 6,041 3,061 2,644 2,630 2,619 2,821 2,911 3,276
KIA 0 0 332 479 749 963 1,040 1,113
EGYPT HYUNDAI 35,759 23,954 21,701 24,097 26,001 30,912 28,194 30,652
Total 5,025,266 5,335,080 6,105,946 6,450,685 6,811,081 7,004,829 7,075,918 7,152,844

Source: Global LV Production Data (as of 7 Dec. 2010)

  • (Note)
  • 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
  • 2. Figures for 2008 and 2009 indicate actual production results.
  • 3. All rights reserved. Reproduction of any data will require permission of IHS Global Insight.

Automotive: India: Hyundai to Increase Prices in India from January 2011

2010-12-07 – Hyundai will increase the prices of its models in India by up to 2% from January 2011 onwards, reports the Hindustan Times. The company cites the continued increase in input costs as the reason behind the planned increase. Hyundai India director (sales and marketing), Arvind Saxena, said, "We have been absorbing [the] increase in input costs but now we have decided to pass it marginally to customers. From January onwards, there will be an increase in prices of vehicles by 1.5% to 2%.''

Significance: Hyundai's announcement follows similar moves by Maruti Suzuki and General Motors (GM). Automakers in India have been increasing their prices at the start of the calendar year for the past couple of years now, citing increasing input costs as the principal reason. A positive side-effect of these price rises for the automakers is that there is a marginal uplift in year-end sales, during what is a traditionally slow period for the Indian market. Input costs are not expected to stabilise in the medium term and other automakers in India are likely to announce similar price increases applicable from January 2011.

China: Hyundai Beijing Auto Starts Work on Third Plant, Kia's Chinese Sales Top 300,000 Units

2010-11-29 – Beijing Hyundai yesterday broke ground at the site of its third plant in China, which will eventually give the joint venture the capacity to produce 1 million units in the country annually, while affiliate Kia has announced that it has exceeded the 300,000-unit sales mark already in 2010.

IHS Global Insight Perspective

Significance Hyundai yesterday broke ground at the site of its third plant in China with joint venture (JV) partner Beijing Auto as it looks to move into upmarket segments.
Implications Meanwhile, affiliate Kia and its JV partner Dongfeng Yueda have announced that they have surpassed the 300,000-unit sales milestone in China this year, eclipsing 2009's full-year total.
Outlook Hyundai's move to expand production further comes as it will exceed its maximum installed capacity in China this year. However, its shift into premium segments still carries some risk as the higher up it aims, the less compelling the case becomes for both Hyundai and Kia.

 

Hyundai Motor Company and its Chinese joint-venture (JV) partner Beijing Automotive Industry Holding Company (BAIC) broke ground at the site of its planned third facility yesterday, according to a Reuters report. At a ceremony to mark the occasion, BAIC chairman Xu Heyi said that the plant will help address the JV's current undercapacity in the country. "When the third plant is up and running, Beijing Hyundai will speed up the introduction of Hyundai's medium-to-high end models to further expand its portfolio", Xu said. Bejing Hyundai is on target to sell about 700,000 cars in China this year, exceeding its current annual capacity of 600,000 units at its two existing facilities. The new plant will be based on the outskirts of Beijing and will give the JV a further 300,000 units of annual capacity by July 2012, rising to 400,000 units eventually, Xu said.

Meanwhile, Hyundai affiliate Kia Motors has announced that its sales in China have exceeded the 300,000-unit mark already this year. In a company statement reported by the Yonhap news agency, Kia said that its Chinese sales as of 28 November had hit 300,004 units, a 45% year-on-year (y/y) increase and eclipsing 2009's full-year sales total of 241,300 units. The company now expects its Chinese sales to reach 330,000 units in 2010. Kia attributed the lift, which is above the market rate, which is currently running at around 30%, to the release of new models such as the Sportage R and the Soul, which have captured interest from young Chinese car buyers.

Kia has achieved instant success with its new Sportage R, which was released in China last month, and managed to secure 5,000 unit sales in its first month, indicating that the sharply styled new sport utility vehicle (SUV) is attracting interest from the off. In addition, Kia also said that sales of the Soul, the quirkily styled multi-purpose vehicle (MPV) introduced in China earlier this year, have reached 16,435 units already and the model is showing strong signs of becoming a volume player along with its subcompact sedans, the Forte and the Cerato.

Beijing Hyundai is also planning an upmarket model offensive, partly facilitated by its new plant when it comes on stream. Beijing Hyundai, which competes in the Chinese marketplace with the Accent, i30, and Verna sedan models and the ix35 and Tucson SUVs, will roll out its upscale Sonata sedan next year, Hsiu-Fu Wang, the company's vice-president, said at the Beijing event. Wang added that Hyundai will add its newest models, including an SUV, in the upmarket segments after the third plant is up and running in 2012. Wang said that car sales could grow by between 10% and 15% in China next year and beyond, and shrugged off concerns that Beijing Hyundai could end up with excess capacity as a result of the new plant. Hyundai's growth in China is currently around 23% from 2009.

Outlook and Implications

Hyundai and affiliate Kia are progressing at pace in China, although Hyundai's growth this year, it should be noted, is well below the average market rate of around 35% y/y for passenger cars. Hyundai has identified capacity constraints as its main problem, but the move into higher-priced segments is also a clear indicator that the competition in the lower end of the market is becoming ever more intense as the indigenous Chinese carmakers improve their products and grow more appealing to consumers. Hyundai needs to begin to distance itself from the budget end and position itself in the mid-mass-market position towards which its quality, technology, and designs now lean.

Further evidence of the company's aggressive expansion plans in China came with the recent announcement that Hyundai had agreed a separate new commercial vehicle (CV) JV, which will see it expand into medium and heavy commercial vehicle production in the country. As announced in October, Hyundai plans to establish a 50:50 CV JV with Chinese-based CV manufacturer Ziyang Nanjun Automobile. The JV will initially be capitalised at 500 billion won (US$442.4 million) and will produce a full line-up of buses, trucks, and engines. The JV will initially use Ziyang Nanjun's existing production facility in the country and will also accelerate its product development efforts in order to improve the quality and features of the current crop of CV models. The JV will also start building a new plant in Sichuan Province as early as the start of next year in an attempt to launch new models customised for local conditions in China. The automaker plans to sell 90,000 CVs in the country during 2011, with an eventual target of achieving 5% of the CV market (sales of almost 300,000 units) by 2015. Hyundai currently imports CVs from South Korea for sale in the Chinese market.

Meanwhile, Kia and JV partner Dongfeng Yueda is growing well ahead of the market rate (45% y/y), and that is largely thanks to the sharp new designs emanating from its European design studio and its much-improved quality, combining to offer a compelling value-for-money proposition. The combination of the former is actually driving Kia's growth globally and is not restricted to emerging markets as it gains ground in Europe and North America. Indeed, Kia is the driving force behind the Hyundai-Kia Group's sales in China. For November, sales across its JVs stood at 88,488 units (up 24% y/y) in the month, while its year-to-date (YTD) sales are up 32% y/y at 845,925 units, driven by Kia's success.

The major hurdle to Hyundai's Chinese ambitions will come in the form of competition, which is set to intensify with the slowing growth rates. In the fast-expanding market of the last two years, the major players have all profited handsomely; but as growth rates slow to the low double-, high single-digit range, pricing, design, dealer experience, and brand image will begin to have greater influence. Hence, Hyundai's strategy to introduce high-end products at its new plant is the correct move. Whether it is as successful as it hopes it will be is less straightforward to predict. Hyundai, and Kia for that matter, provides a compelling proposition in the budget and mass-market segments, but the higher it goes, the more intangible factors begin to exert their force, and it is in these areas that Hyundai-Kia is still lacking.

<Automotive Industry Portal MarkLines>