Hyundai Kia Motors Lowers Sales Target This Year for the First Time in Two Years

Hyundai Kia Motors' Sales Target for This Year: 7.536 Million Units
Reflecting Domestic Demand Contraction Due to Decline in China Market Share and Reduction in Individual Consumption Tax
Last Year, Hyundai Kia Motors Achieved 94% of Global Sales Target with 7.19 Million Units Sold

[Asia Economy Reporter Suyeon Woo] Hyundai Kia Motors, Korea's representative automobile manufacturer, has set this year's sales target at 7,536,000 units, lower than last year's target.

This decision reflects concerns about the Chinese market, which is undergoing structural reform, and the domestic market contraction due to the end of the individual consumption tax (ICT) reduction. It also shows a determination to achieve qualitative growth rather than quantitative growth amid the paradigm shift in the future car era.

According to the Financial Supervisory Service's electronic disclosure system on the 3rd, Hyundai Kia Motors set its global sales target for 2020 at 7,536,000 units. Compared to last year's target (7.6 million units), this is a 0.8% decrease, marking the first time in two years that Hyundai Kia Motors has lowered its annual target. Hyundai Motor Company set domestic sales at 732,000 units and overseas sales at 3,844,000 units, totaling 4,576,000 units globally, while Kia Motors set domestic sales at 520,000 units and overseas sales at 2,440,000 units, totaling 2,960,000 units.

The background for this downward adjustment includes demand slowdown in major emerging markets such as China and India, and Hyundai Kia Motors' declining market share in China. The rise in imported car market share and the gloomy outlook for the Korean domestic market due to the end of the ICT reduction were also partially reflected.

Last year, Hyundai Kia Motors sold 7.19 million units globally, a 2.8% decrease from the previous year. Although the achievement rate of last year's target (7.6 million units) reached 94%, the company failed to meet its target for five consecutive years. Hyundai Motor Company recorded domestic sales of 740,000 units, meeting last year's target of 712,000 units. The Palisade created a sensation in the domestic large sport utility vehicle (SUV) market, boosting sales, and the 'national sedans' Sonata and Grandeur both surpassed 100,000 units sold.

In overseas markets, Kia Motors' Telluride and Hyundai Motor Company's Palisade large SUV lineups led U.S. performance by gaining popularity in North America. In Europe, sales increased mainly for eco-friendly vehicles, but persistent sluggishness in the Chinese market offset these gains. As of November last year, the cumulative market share (wholesale sales) of Hyundai Kia Motors in China fell to 1.5% and 1.3%, respectively.

However, based on target figures, although this year's target is lower than last year’s, comparing it with last year’s sales volume reveals Hyundai Kia Motors' sales strategy direction. Hyundai Motor Company's domestic target is 1% lower than last year's actual sales, and Kia Motors' domestic target is the same as last year's sales. For overseas sales, Hyundai Motor Company set its target 4% higher, and Kia Motors set it 8% higher, adopting an aggressive stance.

Researcher Seonjae Song of Hana Financial Investment said, "Considering the expected market share increase due to new car launches in the U.S. market, the base effect in China and India markets, and the effect of Kia Motors' India plant starting full operation, the overseas sales targets seem to be set aggressively," adding, "Overall, the targets are achievable."

This content was produced with the assistance of AI translation services.