Hyundai, Kia Boost Global Auto Sales on New Models, Rising Global Demand
Hyundai Motor Co. and Kia Motors Corp., South Korea's two largest automakers, increased worldwide sales in January as new models and global economic recovery lifted demand.
Hyundai sold 309,800 vehicles last month, 14 percent more than a year earlier, the Seoul-based carmaker said in a statement to the Korea Exchange. Kia, an affiliate of Hyundai, boosted sales 33 percent to 217,243 units, Bloomberg reported.
The automakers plan to introduce 14 new or revamped models this year to boost sales 10 percent amid rising demand in China and other emerging markets. Hyundai is building a third plant in China and planning to add one in Brazil.
"New cars will continue to help Korean automakers sustain growth throughout this year," said Cho Soo Hong, a Seoul-based analyst at Woori Investment & Securities Co. "Auto demand in the U.S. and China will likely remain healthy this year."
Hyundai rose 1.1 percent to close at 181,000 won in Seoul trading, while Kia gained 0.9 percent to 55,200 won. The benchmark Kospi index rose 0.1 percent.
Industrywide sales for the country's five automakers, which include Ssangyong Motor Co., GM Daewoo Auto & Technology Co. and Renault Samsung Motors Co., increased 22 percent to 626,806 vehicles in January. Domestic shipments rose 1.4 percent, while overseas sales grew 28 percent.
Hyundai's sales outside South Korea rose 20 percent last month, while demand at home dropped 7.3 percent. Kia’s overseas sales gained 37 percent.
Hyundai last week reported a record profit of 1.4 trillion won ($1.3 billion) for the fourth quarter after winning more customers in the U.S. and China.
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