South Korea’s Hyundai Motor and associate Kia Motors turned in their lowest sales in seven years in 2019 as a business in China sank, missing their target for a fifth straight time, but estimate better numbers for 2020.
Weak 2019 sales mark the challenges Hyundai has been facing, including a series of annual profit drops at Hyundai and higher costs to develop future technologies even as the worldwide auto industry deteriorates.
Hyundai and Kia reported a 3% plunge in their combined global sales to 7.19 million autos for 2019, falling in need of their target to sell 7.6 million automobiles.
Their sales have plunged in China, the world’s greatest auto marketplace, offsetting a recovery in the U.S. where demand for their new sport utility vehicles (SUV) and a favorable forex fee have helped.
Hyundai and Kia, however, mentioned they expect mixed sales to grow 5% to 7.54 million vehicles in 2020, without giving any further particulars. That compares with a 0.4% growth in the global market projected by its think tank and a 0.9% shortening forecast by Moody Investors Service.
However, analysts caution will probably be a daunting task for the automobile manufacturers, together with the world’s fifth-biggest by sales, to fulfill their target for 2020.
The global auto market is widely anticipated to remain retard in 2020, as demand contracts further in the U.S. and Europe, signaling more competition for Hyundai and Kia.
Hyundai and Kia intend to launch remodeled SUVs like Hyundai’s Tucson and Kia’s Sorento this year.