By Kim Hyun-cheol
Staff Reporter
Hyundai-Kia Automotive Group failed to announce an annual sales target for the country's leading carmakers at its New Year ceremony held Friday, an unusual occurrence reflecting the current uncertainty of the global automotive industry.
In a New Year's message, Chairman Chung Mong-koo said the business group needs to put its top priority on boosting overseas sales this year to weather the global economic downturn, but gave no detailed goal for overall sales.
``It is the only practical choice, as the global economic crisis is likely to worsen in 2009,'' he said.
Choi Jae-kuk, Hyundai-Kia's vice chairman, said the fluctuating market kept the company from confirming this year's sales target.
``Business circumstances are so fuzzy right now. Both Hyundai and Kia may have to set goals on a quarterly basis,'' he said.
The business group conventionally discloses its projected sales at the annual ceremony, aiming to maximize its capacity. This has been considered a yardstick to forecast the prospects of Korea's automotive business.
At the same ceremony last year, Chung said Hyundai aimed to sell 3.1 million vehicles and Kia 1.7 million, 4.8 million in total for 21.1 percent annual growth. By the end of the year, however, they ended up selling 4.2 billion vehicles after being hit hard by the global recession.
Uncertainty around the world, especially in the United States, hindered Hyundai-Kia from clarifying sales goals for the year, industry watchers said. Market sizes and trends are extremely hard to forecast when it remains unclear whether the three biggest U.S. companies ― GM, Chrysler and Ford ― will survive.
Global carmakers expect that demand will shrink further in major global markets especially the U.S. and Europe.
Overall demand will be 13.2 million vehicles in the U.S., less than the 13.7 million last year, according to the Korea Automotive Research Institute. In Europe, demand is expected to drop to 15.8 million vehicles.
This year is considered critical for Hyundai-Kia in its attempts to consolidate its status on the global stage.
Chung announced ``emergency management'' measures at an executive meeting last month, where the 70-year-old CEO ordered that the firm's focus be turned to research and development, as well as marketing.
The companies need to preempt the overseas market by promptly developing and providing cars that meet the needs of local drivers, he stressed at the ceremony.
The chairman also stated that the group will build a general sales support system and sharpen its quality competitiveness as part of efforts to promote sales abroad.