Hyundai, Kia See Weakest Annual Sales Growth in a Decade

TTAC Staff
by TTAC Staff

2014 may only be a day old, but it’s already shaping up to be a rough year for Hyundai and Kia as they prepare to increase global sales by just 4 percent this year, the lowest and bleakest forecast for the Korean duo since 2003.

Though the foreseen growth will be fueled by revamped models and increased production in China, and is in line with overall projected global sales in 2014, a stronger won and weaker yen — the latter brought about by Japan’s desire to support its export industry and to find a way out of the 20-year trek through the economic wilderness — have eroded the price advantage Hyundai and Kia held over their Japanese competitors.

While the duo experienced market growth in Brazil and China last year, they lost market share in both their home market and in the United States, the former through a free trade pact between the European Union and South Korea. Sales in 2013 totaled 7.56 million units worldwide, with a total projection of 7.86 million going forward in 2014.

Shares of the parent automaker haven’t fared well in the outgoing year, advancing only 8 percent against GM’s 41 percent and Toyota’s 60 percent surges on the trading floor.

TTAC Staff
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  • 28-Cars-Later 28-Cars-Later on Jan 02, 2014

    Don't worry, K nine thouuuussaand will save the day.

  • Big Al from Oz Big Al from Oz on Jan 02, 2014

    I'm a fan of Hyundai and Kia. I think they have improved their quality and range of vehicles quickly. Probably better than any other manufacturer has ever achieved. I see the Japanese manufacturer's hampering the progress made by Hyundai/Kia. In our region the Japanese manufacturers are using Thailand to manufacture many of their vehicles, even the more budget vehicles. This budget area has been where Hyundai/Kia have been quite successful. Since they've gone 'upmarket' the competition has intensified with the Japanese. Korea is a cheap manufacturer of vehicles compared to Australia, but expensive when compared to the Thai's who's GDP is on par with the Chinese. Hyundai/Kia are going to rethink how they are operating. Maybe offshore some manufacturing in the Asia/Oceania region, maybe into China or Thailand. Hyundai's and Kia's Korean auto workers will take an aggressive stance if any production is off shored. I could allude to another auto workers union that never had vision of their longer term position and sustainability. Hyundai/Kia have a problem to overcome. If they become competitive and produce even better vehicles they could lead the world. Look at what they've already achieved in a few short years. They have to become more competitive and progress and not become insular and protective.

    • See 3 previous
    • MLS MLS on Jan 04, 2014

      @Big Al from Oz Daewoo doesn't even exist anymore except as a marketing brand in Korea. The entire operation has been folded into GM.

  • JK43123 JK43123 on Jan 02, 2014

    My wife thinks her Mercury Grand Marquis rides better. I think my Sonata rides better. Go figure. John