Hyundai: designation to help boost sales in China

Hyundai Motor Co., Korea’s leading automaker, said yesterday that it expects growth in vehicle sales in China this month as its two flagship models benefited from Beijing’s subsidy program.

According to company officials, its two best-selling models in China - the Yuedong and Elantra - were added to the country’s list of “energy-saving” models early this month, meaning they now qualify for subsidies.

The two cars were among 61 models added to the 71 energy-efficient cars already on the list. The initial list was announced at the end of June.

“The inclusion has made the Yuedong and Elantra more appealing to Chinese customers, which is likely to boost our sales this month, “ said Kim Hyo-joong, an official at Hyundai Motor’s Shanghai office.

Hyundai Motor now has four car models on the list of 132 vehicles, while its smaller affiliate Kia Motor Co. had its two models included in June.

The Chinese government pays subsidies of at least 3,000 yuan ($440) to consumers who buy these cars as part of efforts to spur purchases of environment-friendly vehicles.

The selected Hyundai models have met the criteria for fuel consumption, surpassing the Chinese government’s standard for energy efficiency by more than 20 percent.

Analysts forecast that Korean automakers’ market share in China will grow this month.

“The government subsidies and the release of the new Verna model will push the market share of Hyundai and Kia together to 10 percent,” said Lim Eun-young, an analyst at Dongbu Securities Co.

She estimated that Hyundai and Kia will sell 55,000 units and 25,000 units, respectively, during August.

Hyundai Motor and its smaller affiliate Kia are pushing deeper into China, as the country has become the world’s largest automobile market. The China ventures of Hyundai and Kia are seeking to sell more than 1 million vehicles this year. Yonhap