Hyundai and Kia Motors are rapidly increasing sales in emerging countries such as India and Russia. Meanwhile, sales in Europe and China are also recovering.

However, the US has not been able to get out of the sluggish pace in the US. It is the analysis that the height of the rebound in Hyundai and Kia will based on the US market.

According to the US automotive magazine Wards Auto, global automobile sales increased 2.2% year-on-year to 24.45 million units in the first quarter of this year, mainly because of rising oil prices and the growth of major emerging market automobile markets. South America, the leading emerging market, posted sales of 1.04 million units in the first quarter, up 15 %, and 409,000 units in Russia, which is up 19 %.

On the other hand, India`s sales volume increased by 12.3% to 1.15 million units. Wards stated that sales in India have more than doubled over the past decade, but still only one out of every 28 in India has cars.

It is now expected that the emerging market automobile market will continue to rise after 2nd quarter due to the rise in raw material prices, such as international oil price exceeding USD 70 / barrel (crude oil based on Texas crude oil) for the first time since November 2014. Hyundai and Kia Motors are now enjoying favorable conditions for high-fuel efficiency cars such as compact cars.

European first quarter sales volume went up 1.9% to 5.49 million units. HMC`s European sales growth in the first quarter was 7.5%, more than three times the overall sales growth rate in Europe. Hyundai Motor Europe sold 14,598 units. Kia Motors also sold 131,434 units, up 5.2 %.

However, Hyundai and Kia are backward in the toxic US market. In the first quarter, sales in the US market were 2.4 million units, up 2.4% from the previous year. But, Hyundai Motor lost 10.4% year-on-year to 190,000 in the 1st quarter and Kia Motors sold 9.9% to 130,000.

Hyundai`s sales of its mainstream Sonata were down 41% year on year in April while sales of the Elantra and Accent decreased 16.1% and 59.5% year on year, respectively.

The Korean won continues to struggle as the Korean won is disadvantageous to the price competition with the Japanese car, which is the biggest competitor. The incentives of Hyundai Motor and Kia Motors US dealers have increased sharply and the yield has deteriorated. Nissan and other Japanese automakers are preparing to launch a variety of new models this year, so automakers analyze that Hyundai & Kia Motors sales recovery is not likely.

Meanwhile, Hyundai and Kia set a target of selling 333,000 units in the first quarter, down 1% in the second quarter from 10% in the first quarter. The new Santa Fe, Tucson Partial Change (face lift) model, Stinger Special Edition, and Sorento part change models.

Hyundai`s US sales of SUVs surpassed 25,618 in last month. Tucson sales went up 27.9 % to 12,030 units, while compact SUV Kona also sold 3315 units, up 40 % from March. Hyundai and Kia are hurrying to release pickup trucks.

By Ye Jin Soo jinye@


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