(Adds U.S. sales growth target, details, background)
By Cheon Jong-woo
SEOUL, Nov 1 (Reuters) - Hyundai Motor Co <005380.KS>, South
Korea's top auto maker, aims to almost double its sales in China
in 2008 after it opens a second plant in the world's
fastest-growing auto market, a company official said on Thursday.
Hyundai, the world's sixth-largest car maker with its
affiliate Kia Motors Corp <000270.KS>, also targets 10 percent
growth next year in the United States with new models, the
official told Reuters.
"As we plan to begin mass production in May next year,
China's sales would rise to 500,000 units in 2008 from this
year's 260,000," said the official, asking not to be identified.
China's booming economy has drawn the world's top car makers,
including General Motors Corp <GM.N>, Toyota Motor Corp <7203.T>
and Honda Motor Co <7267.T>, all keen to sell cars to an
increasingly wealthy population.
The fierce competition forced Hyundai, which saw a 21 percent
drop in Chinese sales during the first nine months of 2007 from a
year ago, to cut its sales target for 2007 for the country by 16
percent to 260,000 units from the previous 310,000.
Analysts say Hyundai's sales in China are unlikely to pick up
until late next year, when the company hopes the new Elantra
compact car and the Sonata sedan, modified solely for China, will
attract more customers and after the second factory opens.
Its capacity in China will double to 600,000 units per year
when the new $1 billion plant on the outskirts of Beijing starts
mass production.
In India, Hyundai targets 50 percent growth after it
introduced the i10, a sub-compact sedan, the official said, with
an overall sales goal of 450,000 units next year, compared to
this year's target of 300,000.
Hyundai expects its new models such as the premium BH sedan,
which will have a V-8 engine, to help increase U.S. sales net
year, the official said. It aims to sell about 20,000 units of
the BH annually in the United States.
Global auto makers have taken a hit in the world's largest
auto market due to a slowdown in the U.S. economy, and analysts
say Hyundai is not an exception.
Last week, a Hyundai senior official admitted the company
would miss its revised sales target in the world's top economy,
saying it would sell 475,000 units there.
The auto maker decided to halt production at its U.S. plant
for 10 days in the fourth quarter after lowering its sales target
in the country to 510,000 vehicles from the previous 555,000.
The weaker performance came as the won <KRW=> hovered around
levels which have not been seen since the Asia financial crisis.
Hyundai is setting up business plans for the next year with a foreign exchange rate of 880 won per dollar, the official said.
Meanwhile, record-breaking oil prices would not hurt
Hyundai's sales as the company's compact models would become more
appealing to customers, he added.
((Editing by Sei Chong; Reuters Messaging:
[email protected]; Email:
[email protected]; Tel: +822 3704 5665))
Keywords: HYUNDAI CHINA/