Shanghai, April 20 (Gasgoo.com) Hyundai Motor Co. has boosted its 2009 China sales forecast by more than 11% to more than 400,000 units as tax cuts spur demand for small cars in the Chinese market, Beijing Hyundai Motor Co. president Noh Jae Man said today at the Shanghai motor show, Bloomberg reported.
Hyundai had an earlier prediction of selling 360,000 vehicles in China this year, but the Korean carmaker boosted its China sales 49% in the first three months. "Fortune is smiling upon Hyundai now," said a Seoul-based analyst at KB Investment & Securities Co. The carmaker is benefiting from "a weak local currency and the Chinese government's incentives on small cars --- a Hyundai strength."
In January, China cut the sales taxes on cars with engines of 1.6 liters or less to revive demand after auto sales saw slowest growth in 2008. Four of the six models made by Beijing Hyundai qualify for the incentive, including the Elantra, Elantra Yuedong and Accent small cars.
Hyundai on Feb. 1 said it aimed to boost sales at its Chinese venture by 22% this year. Sales in China accounted for 11 percent of Hyundai's global sales last year. That only lagged behind South Korea's 21% share and the 14% sold in the U.S.
General Motors Corp., the largest global automaker in China, has also raised its sales forecast as the government cuts taxes and hands out subsidies to revive flagging auto demand.
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