[Courtesy of Hyundai Motor Group]
South Korea's Hyundai Motor and affiliate Kia Motors said on Monday they missed their sales targets for 2015 for the first time since the 2008 global financial crisis.
Hyundai and Kia, together the world's fifth-largest automaker by sales, recorded 2015 sales of 8.01 million vehicles, falling short of their 8.2 million target.
The Korean duet sees a weaker global demand for cars and set a target of modest 1.5% rise in their 2016 sales projections. .
Hyundai Motor expects 2016 sales to reach 5.01 million vehicles, after posting 2015 sales of 4.96 million vehicles. Kia Motors set its 2016 goal at 3.12 million vehicles, after selling 3.05 million vehicles.
Chung Mong-koo, chief of the Hyundai Motor Group, said, “the world economy is expected to continue its low growth because of China's economic slowdown, low oil prices and jitters in emerging markets stemming from U.S. interest rate hikes."
Kia plans to open its first Mexico factory in the first half of 2016 while Hyundai Motor is set to start production at its fourth China factory in the second half.
Hyundai has been an outperformer in recent years thanks to the surge in demand for automobiles in China, But the high reliance turned into a drag after China’s economic growth moderated in 2015.
Hyundai and Kia see a flicker of hope that their sales in China may bounce back this year thanks to tax cuts on small cars.
By Alex lee
reporter
Park Sae-jin
swatchsjp@ajunews.com
