By Kim Hyun-cheol
Staff Reporter
Kia Motors, the largest affiliate of Hyundai Motor, accomplished a major feat among reduced global competition last year.
Combined, Hyundai and Kia are expected to have taken up nearly 8 percent of the global auto market in 2009, thanks to strong sales in major markets, with the carmakers successfully exploiting the softened competition during the economic downturn.
Kia sold 412,752 vehicles at home and 1.24 million abroad, resulting in 1.65 million in annual sales, according to industry figures.
North America and Europe remained the biggest consumers for the company, with China soaring as a new market. Kia sold 346,181 vehicles in the United States and Canada, 331,733 in Europe and 241,386 in China.
Its share in the U.S. market has risen to 3 percent for the first time, benefiting from rebounding demand for less expensive and fuel-efficient models.
The sales record raises the maker's global share to an unprecedented 2.6 percent in a report by JD Power, a U.S.-based research firm, which evaluated the overall global demand as amounting to 64 million vehicles.
Kia models took up 1.9 percent worldwide in 2007, and grew to 2.1 percent in 2008.
Combined, Hyundai and Kia are expected to have taken up nearly 8 percent of the global auto market last year. Hyundai's annual sales are yet to be released, but its market share averaged 5.2 percent in the first three quarters last year.
Hyundai, the largest Korean maker, sold 3.11 million vehicles in 2009 on the basis of delivery, but the actual figure is forecast to be higher as its sales from inventory rose.
Kia and Hyundai's global share was 6 percent in 2007 and 6.5 percent in 2008. Last year, they reached 8.3 percent together in the third quarter.
Timely releases of new models and expanded sales of strategic models in emerging markets mainly helped overall overseas sales grow, Kia Motors said. In the domestic market, tax incentives for scrapping old vehicles proved to be more beneficial than expected, it added.
The buoyant maker plans to keep the momentum going this year, as it plans to unveil three new models in the United States and Korea. Hyundai and Kia are looking to raise sales by 17 percent this year on the back of an expected recovery in the global economy.
But the hopeful outlook still faces a slew of obstacles, led by the growing concern of a stronger won.
Depreciation of the currency has been a major factor in boosting performance of Korean makers in the last couple of years. Since March until the end of last year, the U.S. dollar was down 27 percent against the won. But the Korean currency has begun to gain.
Some analysts also point out ongoing alliances between global players, as well as growth forecast for U.S. makers amid the economic recovery, could also negatively affect the Korean carmakers.