Kia Motors, Hyundai target higher 2017 sales

Kia Motors Corp aims to sell 3.17 million vehicles globally in 2017, the South Korean company said yesterday, a marginal increase from its 2016 goal of 3.12 million, Reuters reported.

The company reported a fall in 2016 sales but offered no details.

In a separate report, Reuters reported that Hyundai Motor and affiliate Kia Motors yesterday forecast global sales to rebound in 2017 by a stronger-than-expected 5 per cent, after posting their first annual sales fall in nearly two decades last year.

Sales could increase this year with emerging markets such as Russia stabilising, and with Hyundai and Kia Motors gearing up to supply to the US and China, analysts said.

However, margins could be squeezed as the South Korean duo - which together ranked fifth in global sales, planned to add capacity in China and Mexico, just as many analysts expected those markets and the US to slow.

"With the global economy continuing its low growth, trade protectionism spreading and competition intensifying in the automobile industry, uncertainty is growing more than ever," Hyundai Motor Group chairman Chung Mong-koo said in his New Year message to employees.

According to the 78-year-old chief, automakers would launch over 10 new models every year, including a new SUV for advanced markets and a Genesis G70 sedan this year.

The projected 5 per cent increase in global sales for 2017 to 8.25 million vehicles was much higher than 1.9 per cent forecast increase earlier by Hyundai Motor Group's own think-tank.

"The 2017 goal is slightly higher than my projection," said Ko Tae-bong, an auto analyst at Hi Investment & Securities, Reuters reported.

According to commentators, Hyundai Motor likely saw its fourth straight annual profit decline in 2016, with sales hit by its sedan-heavy line-up, which meant it missed a boom in SUV demand, and as emerging markets continued to be sluggish.

Hyundai Motor Co said it hoped to sell 5.08 million vehicles globally in 2017, a figure which was up slightly from its 2016 goal.

According to the company's regulatory filing it planned to sell 4.4 million vehicles overseas and another 683,000 vehicles domestically. The company aims to achieve a 2016 total sales target of 5.01 million but did not disclose actual sales for last year.