Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Hyundai, Kia expect 1 mil. sales in Europe
Hyundai Motor presents its N high-performance cars during the press day of the 2018 Paris Motor Show, Tuesday (local time). / Courtesy of Hyundai Motor
By Nam Hyun-woo
By Nam Hyun-woo
PARIS _ Hyundai Motor and Kia Motors will likely see their combined European sales surpass 1 million cars this year, a feat that may come 41 years after the two companies' entrance to the region.
The two brands said they will further increase their presence in the European market by focusing on the three segments of high-performance, eco-friendly and SUV.
According to the European Automobile Manufacturers Association, Hyundai Motor sold 378,834 vehicles in Europe from January to August this year, up 9.8 percent from a year earlier.
With Kia Motors adding 336,216 cars during the same period, up 5.9 percent from a year earlier, the two Hyundai Motor Group brands sold 715,050 vehicles in the region, up 8 percent year-on-year.
Given the pace of the sales, a Hyundai Motor official said it is “quite conceivable that the two companies' 2018 sales will top the 1 million mark.”
Should the feat be accomplished, Europe will become the third region for the two brands to sell more than 1 million cars in a year, following the U.S. and China.
Hyundai Motor took its first steps in Europe by exporting 300 Pony cars to Greece in 1977. It was followed by Kia Motors and Hyundai Motor each setting up European bodies in 1995 and 2000.
Since then, the two brands have shown stable growth in the region. In 2008, they retailed 508,574 vehicles in Europe and the number nearly doubled to 995,383 last year. During that period, their sales kept growing except for 2013 when the number dropped by 1.4 percent from 2012.
Along with the growth, the two companies' European market share grew to 6.4 percent as of August this year, from 3.4 percent in 2008.
They attributed the expansion to Hyundai's small and mid-size hatchback lineup of “i” series _ the i10, the i20 and the i30 _ and Kia's localized models of the ix20, the Ceed and the Venga.
The i series led Hyundai's 2017 sales, selling 275,918 units to account for 52.3 percent of the total Hyundai sales in Europe.
Hyundai Motor showcases the Nexo fuel-cell electric vehicle during the press day of the 2018 Paris Motor Show, Tuesday (local time). / Courtesy of Hyundai Motor
Despite the growth, the outlook is not as rosy as it used to be, as more competitors eye the European market while demand seems to be stagnant.
The brands said they will focus on the three segments of high-performance, eco-friendly and SUV to weather through the growing competition from rivals.
For the high-performance segment, Hyundai said it will promote sales of the i30 N, as well as expanding the N lineup.
At the 2018 Paris Motor Show, Hyundai unveiled the i30 Fastback N as the third model having the N brand, as well as introducing a number of variations to the i30 N.
The i30 N's sales are hitting their stride in Europe, reaching 2,957 in the first half of this year. The number has already surpassed this year's sales goal of 2,800.
“Hyundai Motor's solid performance at major motorsport events this year is affecting the sales of the N lineup, helping the company's bid to change its reputation from “a cost-efficient brand” to “an advanced technology brand,” a Hyundai Motor official said.
For the eco-friendly segment, Hyundai and Kia plan to expand their lineup of battery cars, retailing the Kona Electric, the Niro EV and the Nexo fuel-cell EV.
“Along with the move, Hyundai and Kia will tune up their SUV lineups in the European market, to meet the growing demands for SUVs in the region,” the official said.