Hyundai may boost China sales at double market rate

Hyundai Motor Co., rebounding from a record slump in China, expects to boost sales in the country at twice the pace of the overall industry next year as it adds more models and dealers in Asia's biggest vehicle market.

"We are trying our best to grow at a faster pace,'' Noh Jae-man, president of Beijing Hyundai Motor Co., the automaker's Chinese venture, said in an interview yesterday. The company's sales may rise as much as 20 percent next year, compared with an expected industry gain of less than 10 percent, he added.

Hyundai, South Korea's biggest automaker, has increased China sales at about triple the pace of the market this year after opening a new plant and adding an Elantra sedan specifically designed for Chinese drivers. The venture will add another locally developed car next year as it widens its product range to 10 vehicles from six by the end of 2010.

The automaker is winning market share as it's "providing competitive products at an attractive price'' said Gu Jiahao, an analyst at CSC Securities Co. in Shanghai.

Hyundai surged 15 percent, the most in seven years, to 63,200 won in Seoul trading today.

Beijing Hyundai had sold 58,549 Elantra Yuedongs by the end of September, less than six months after it went on sale. That's about a quarter of the 219,336 vehicles the venture sold in total in first nine months. An upgraded Yuedong will enter the market in 2010, Noh said.

Missed Target

The venture's sales in the first nine month rose 32 percent, outpacing an 11 percent gain in the overall market. Still, the carmaker expects to sell 320,000 vehicles this year, compared with an initial target of 380,000, because of the industrywide slowdown, Noh said.

"Other companies will also be selling less than they hoped,'' he added. China's car sales have cooled this year as a slumping stock market and slowing economy damps demand.

Beijing Hyundai plans to add a medium-sized sedan in December after debuting it at next month's Guangzhou Auto Show, Noh said. The start of sales was delayed from November because of turbulence in the financial and automobile markets, he added. Two other models will follow next year, including the locally designed car.

The venture plans to raise its number of dealers about 7 percent next year to 450 after an 11 percent increase this year, said Noh.

Beijing Hyundai is still in talks with Hyundai about making cars for overseas markets, Noh said. Exports are unlikely to begin this year, he added.

Beijing Hyundai's sales slumped to 231,137 in 2007, its lowest tally in three years. The venture is equally owned by Hyundai and Beijing Automotive Industry Holding Co.