Hyundai-Kia Forecast Slowest Sales Growth Globally in Last Nine Years

Hyundai-Kia Forecast Slowest Sales Growth Globally in Last Nine YearsWeak market recovery, intensified competition and a capacity constrain has lead Hyundai Motor Co and affiliate Kia Motors Corp to aim for increasing its target of vehicle sales globally in 2015 by 2.5 percent. The South Korean companies have seen slowest rate of expansion in the last nine years.

Together, Hyundai-Kia, is the No. 5 global automaker, and they have seen a slow sales growth since they expanded to a record high 2010, as the factories touched full strength and the competition grew tougher in the home markets along with the major overseas markets like the United States.

On Tuesday, Hyundai Motor said that it will be constructing two factories in China. This will be its very first new manufacturing plant after 2012. However the factories will not start the manufacturing process till late in 2016.

As far as 2015 is concerned, the duo aims at selling 8.2 million vehicles out of which 5.05 million will be for Hyundai alone.

The pair has offered conservative targets for sales in recent years and has been able to beat them. In 2014, sales figures rose 5.8 percent touching 8 million vehicles. The companies had earlier set a target of 7.86 million. The improved sales results were mainly due to strengthening sales in China along with some other emerging markets.

On Friday, Chung Mong-koo, the chairman of the conglomerate said to the employees in a New Year speech, "I expect to comfortably achieve our sales target this year."