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BIZCHINA / Center |
Hyundai aims to double China sales in 2008(Agencies)
Updated: 2007-11-01 14:01 Hyundai Motor Co, South Korea's top auto maker, aims to almost double its sales in China in 2008 after it opens a second plant in the world's fastest-growing auto market, a company official said on Thursday. "As we plan to begin mass production in May next year, China's sales would rise to 500,000 units in 2008 from this year's 260,000," said the official, asking not to be identified. China's booming economy has drawn the world's top car makers, including General Motors Corp, Toyota Motor Corp and Honda Motor Co, all keen to sell cars to an increasingly wealthy population. The fierce competition forced Hyundai, which saw a 21 percent drop in Chinese sales during the first nine months of 2007 from a year ago, to cut its sales target for 2007 for the country by 16 percent to 260,000 units from the previous 310,000. Analysts say Hyundai's sales in China are unlikely to pick up until late next year, when the company hopes the new Elantra compact car and the Sonata sedan, modified solely for China, will attract more customers and after the second factory opens. Its capacity in China will double to 600,000 units per year when the new US$1 billion plant on the outskirts of Beijing starts mass production. Global auto makers have taken a hit in the world's largest auto market due to a slowdown in the US economy, and analysts say Hyundai is not an exception. Last week, a Hyundai senior official admitted the company would miss its revised sales target in the world's top economy, saying it would sell 475,000 units there. The auto maker decided to halt production at its US plant for 10 days in the fourth quarter after lowering its sales target in the country to 510,000 vehicles from the previous 555,000. The weaker performance came as the won hovered around levels which have not been seen since the Asia financial crisis. Hyundai is setting up business plans for the next year with a foreign exchange rate of 880 won per dollar, the official said. Meanwhile, record-breaking oil prices would not hurt Hyundai's sales as the company's compact models would become more appealing to customers, he added.
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