Hyundai expects to beat its 2011 global sales target

The Korean automaker, Hyundai Motors is well-known for their low cost models. The auto major now intends to beat its own car sales targets for this year, by making use of the European economic instability to increase its sales through offering its low-cost models. According to William Lee, Executive VP and President of Hyundai Motors Overseas sales division, the company had been showing a remarkable growth of 10 % (sales) for the past two years, however, faced a slowdown in growth due to the lower production capacity.

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Hyundai Motors is expecting to reach a target of 4 million vehicles sale, beating their own target of 3.9 million. Hyundai Motors might convert the crisis period as an opportunity for their success as the market dynamics have undergone a major transition with the customer's changing attitude towards value for money deals. The prevalent unemployment conditions, low economic growth in developed countries have turned out to be predicting an auto market slowdown. Lee also said that the company expects to register a whopping sales of 4 milion vehicles globally in this fiscal, in comparison to its previous target of 3.9 million. CEO of Fiat, Sergio Marchionne had commented during the last month that the Italian auto major is doing well so far in meeting with their current targets and they need to worry about their current slowdown in the auto market.

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The Korean Auto maker, Hyundai was considered to be a manufacturer of cheaper vehicles mostly in the first half of their 44 year old journey. Their first car, Hyundai Pony, based on the Italian design however the engine, suspension and transmission technology was borrowed from Japanese auto brand Mitsubishi Motors. The Korean brand was targeted to be a matter of ridicule with a show on BBC mentioning that their top-selling model, Hyundai Accent subcompact sedan should rather be nicknamed as 'Hyundai Accident', which is said to be worse than a 'cheap lunch'. But Hyundai had undergone a major alteration with respect to their standard and quality improvised to an extent where the auto brand now stands as a threat to global automakers. The company had employed many strategies during the current years and managed to increase their sales even in the prevalent dire conditions. The quality of the Hyundai Motors has improved drastically over a period of time to be able to position itself with Toyota Motors and had also been able to attain the No. 5 rank globally with respect to 2010 sales in association with Kia Motors. However, the credit goes to the extremely strong-willed chairman Chung Mong-Koo who had brought a transformation bringing in a disciplined culture into the company. Hyundai models like Hyundai Sonata and Hyundai Elantra had been high selling cars offering excellent features and superb styling.

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The cars had been able to curb the sales of Toyota Camry and Honda Civic in the U.S. Market and had held a strong position in the emerging markets like India and China as well. Despite doing well for around two years with remarkable growth, the company sales growth softened due to over 100% utilization of their production capacity. The company started facing the supply constraints and the U.S. dealers were unable to get enough stock from each model of the company's product portfolio. Jung Kyun Sik, a fund manager at Eugene Asset Management had expressed his opinion that Hyundai Motors has to cash in the current crisis period, which is more likely to turn out to be a plus point for them as the people have a tendency to stick to the economic models than to turning towards the luxury brands during the crisis period.

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However, there are mixed opinions about the Hyundai Motor's future growth, while Jung feels that Hyundai should more concentrate on building sales volumes rather than competing against the costly models in the market, an analyst from LIG Investment and Securities thinks that Hyundai should restart with engine manufacturing Lee had expressed his views on behalf of Hyundai Motor's ambitions to boost its sales in Europe by 20% taking it to 480,000 vehicles, including the sales of Hyundai i30 compact model expected sales of 110,000. The Hyundai i30 has been the best-selling model in the European market and the Korean company has plans to introduce its successor Hyundai i40 that has been specifically designed for the European market Hyundai's market share in the European market has been only 2.6% as compared to the U.S. 6.3 % and the China's 19.7 %. However, the company envisage building up the market share in Europe to 5% by offering their upcoming fleet of cars.

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