By Kim Hyun-cheol
Staff Reporter
Hyundai-Kia Automotive Group will launch a series of localized new models in China.
"Our prospects in the Chinese market are positive," said Seol Young-heung, Hyundai-Kia president in charge of Hyundai-Kia's operation in China. "Both Hyundai and Kia will launch two new products every year."
Breaking the 1 million mark in both production and sales in Chinese markets is the goal by 2010, the company said. It expects the series of new models to strengthen its production lineup and boost overall sales in the end.
Currently, Hyundai and its sister Kia both have two plants in China, with annual production capacity reaching 1.03 million vehicles.
Beijing Hyundai, Hyundai's joint venture with China's Beijing Automotive Industry Corp., will release a facelift edition of its signature sedan Sonata in December and a local edition of the i30 hatchback model. Earlier this year, it debuted Yuedong, a local model of its small sedan model Avante.
On Thursday, Hyundai said it will export the Ulsan-produced edition of its latest luxury sedan, the Genesis. Its original model was launched in China Tuesday under the name the Rohens.
Its sale was initially scheduled for July, but was delayed due to the Beijing Olympic Games in August and China's implementation of consumption tax on large-sized vehicles.
New models in China, however, will be different from their original models thanks to Hyundai's strategy for localization.
It is always the key to strategic products for overseas markets, but more Chinese customers call for it, according to Hyundai.
"No global players can guarantee success in China without going local, especially for bigger cars with various options, accessories and packages," Hyundai's Seol said.
It is in line with the carmaker's strategy of "sophistication." Hyundai aims to compete with global rivals by going after the luxury car market with the Genesis, based on its confidence of product quality and price competitiveness.
The Sonata's facelift edition due December will have a different exterior design with options specifically aimed at catering to Chinese customers, the automaker said.
Under the localization policy, Kia's crossover utility vehicle, the Soul, will also have major changes in design and optional packages to better appeal to Chinese drivers, Kia said.
Dongfeng Yueda Kia, Kia's Chinese venture with two Chinese partners Dongfeng and Yueda, is currently producing the Cerato, a compact sedan following the Spectra from earlier this year. It plans to launch two localized models next year ― the small-sized sedan Forte and the Soul ― manufactured in its China plants.
In 2010, Beijing Hyundai plans to release its compact model Verna and the replacement of its sports utility vehicle Tuscon, while Kia is planning to launch a new low-price product.
The Korean carmaker is still highly appreciating the potential of the market in spite of an ongoing slump, analysts say.
Vehicle sales have been in constant downturn this year in China, giving global players a hard time in the world's second largest market. The overall sales were 629,000 last month, a drop for the fifth straight month after peaking at 1.05 million in March.
The industry expects China's vehicle market will break the new high of 10 million, well above last year's 8.8 million.
Hyundai and Kia aim to sell 380,000 and 250,000 vehicles this year, respectively. During the January-August period, Hyundai sold 197,319 vehicles while Kia's sales were tallied at 95,416.