South Korean automaker Hyundai
Motor Co. (KSE:005380) and its affiliate Kia Motors Corp.
(KSE:000270) plan to launch new car models and strengthen
marketing efforts to expand their presence in Europe, industry
sources said Thursday.
South Korea's top two automakers, which are flagships of
Hyundai Motor Group, the world's fifth-largest car
manufacturer, said they aim to sell a combined 698,000 units in
Europe this year, up 12.4 percent from the year before, local
sources said.
The market share of the two companies stood in the 5 per
cent range in the first nine months of this year with sales
reaching 513,042 units.
The latest numbers for Hyundai and Kia are noteworthy since
the European car market is expected to reach 15.20 million
units, or a 0.9 percent dip compared to the year before. In
2007, before the onset of the global financial crisis, the
European market stood at 1.8 million units.
The two Korean companies said new models such as the i30
small family car and the Rio subcompact are expected to boost
sales in the coming months. They, in addition, said plans are
underway to launch aggressive marketing campaigns to attract
consumers and increase the number of dealerships along with
after-sales services.
Dealerships will be increased to 2,500 by year's end, a
Hyundai Motor Group executive said.
Industry sources said the upbeat assessments by Hyundai and
Kia are based on good consumer responses to new car models and
overall price competitiveness vis-a-vis rivals.
They also pointed out that despite the decrease in the size
of Europe's car market, some companies such as Volkswagen,
General Motors Co. and Nissan have done well by launching new
models that are designed to appeal to European consumers and by
strengthening their marketing capabilities.
