Hyundai, Kia aim to grow 2017 sales to 8.25 million vehicles globally

SEOUL - Hyundai Motor Co. and affiliate Kia Motors said on Monday they aim to increase their combined sales to 8.25 million vehicles globally in 2017, despite rising competition.

The 2017 target is slightly higher than their 2016 goal of 8.13 million vehicles. The South Korean automakers' final sales figures for 2016 are due out later on Monday, with analysts expecting a miss due to weak demand in emerging markets.

"The 2017 goal is slightly higher than my projection," said Ko Tae-bong, an auto analyst at Hi Investment & Securities, adding that the performance of new models would be the key to success after some disappointments in recent years.

With emerging markets such as Russia stabilizing, and with Hyundai and Kia Motors gearing up to boost vehicle supply to the United States and China, sales could get a lift this year.

But Hyundai Motor and Kia Motors - which together rank fifth in global sales - plan to add capacity in China and Mexico this year, just as those markets and the United States are seen slowing, likely pressuring margins.

"With the global economy continuing its low growth, trade protectionism spreading and competition intensifying in the automobile industry, uncertainty is growing more than ever," Hyundai Motor Group Chairman Chung Mong-koo said in his New Year message to employees.

Hyundai Motor likely clocked its fourth straight annual profit decline last year, hurt by its higher exposure to weak emerging markets, and a product line-up that features more sedans than sport utility vehicles, just as SUVs have become more popular across many global markets.

Hyundai Motor is targeting 2017 global sales of 5.08 million vehicles, while Kia Motors set its goal at 3.17 million vehicles.

Kia Motors Vice Chairman Hank Lee told employees on Monday that the automaker hoped to revive growth this year, after falling short of its 2016 sales target.

Hyundai Motor shares were flat in a wider market .KS11 that was down 0.4 percent in early morning trade, while Kia Motors shares were down 0.3 percent

Hyundai Motor shares fell for a third straight year in 2016, down 2 percent versus the wider market's 3 percent gain. Kia Motors shares slumped 25 percent last year, making them the worst-performing stock among major car makers in the world.

source: news.abs-cbn.com

Car sales in June up 25.3% year-on-year

MANILA - The Chamber of Automotive Manufacturers of the Philippines Inc. said vehicle sales in June went up by a quarter year-on-year amid the improvement in member-firms supply chain.

In a statement, the group said its members sold a total of 13,697 units last month from 10,935 units the same month in 2011. This brought first-half sales to 72,874 units from last year's 69,782.

"The local automotive industry continues to exceed monthly forecasts and perform better than expected because of these favourable situations," Campi said, referring to the return to normal of member-firms' supply chain and an improving economy.

Toyota Motor Philippines kept its lead, capturing 40 percent of the market, followed by Mitsubishi with 23 percent and Honda with 8 percent.

"We are very pleased to end the first semester of the year on a high note. This is indeed a positive sign that the local automotive landscape as a whole is on track to recover lost sales opportunities from earlier in the year. In addition to this, we would like to showcase our strong performance and kick start the 2nd half of the year by holding the 4th Philippine International Motor Show," said Rommel Gutierrez, president of Campi.

The increase in the industry's sales came on the back of Ford Motors' decision to shut down its manufacturing plant in Sta. Rosa, Laguna by the end of the year. The US carmaker sells less than 1,000 units in the Philippine market.

"Use all levers"

Trade Secretary Gregory Domingo on Tuesday said he cannot say whether the US carmaker's export strategy was wrong, adding that the decision was made from a global standpoint.

"But their pullout is a signal that the Philippines is still lacking," Domingo said.

He said a roadmap that the government and the industry are drawing up would include measures on how to increase the domestic car market so there would be economies of scale for manufacturers. The roadmap also should identify gaps in the supply chain and "figure out how to fill in those gaps," he said.

But sales cannot surge unless per capital income in the Philippines hits $2,000, Domingo said.

The government however is "willing to use all levers" to achieve the desired market size, such as giving incentives "allowable by law," he said, without providing details on the perks.

source: interaksyon.com