Hyundai Motor Group sees its sales rebounding in 2017
January 02, 2017 – Hyundai Motor Group is predicting an increase in automobile sales in 2017. This revelation came today after they announced a decrease in annual sales in 2016; it was the first time, in more than 15 years, that Hyundai Motor Group posted a decrease in annual sales. The company failed to keep up with the new trends in vehicle industry.
Hyundai Motor Group compromises of Hyundai Motor Company and Kia Motors. This group is South Korea’s biggest vehicle manufacturer and third worldwide. Hyundai Motors purchased more than 50% shares of Kia Motors in 1998; they now own ~34% shares, though. The annual income of Hyundai Motor Group was more than 182 Billion US Dollars in 2016. With a workforce of over 250,000 employees, this conglomerate is one of the biggest companies in the world.
The company is seeing, or predicting an uplift of over five percent in their motor sales in 2017. Experts believe that Hyundai Motor Group is eyeing motor industry of Russia; they are betting on recovery of Russian economy. They are hoping for a stable Russian economy in 2017; if that really does happen, we surely will see an increase in automobile demand. Hyundai Motor Group wants to capitalize on this upcoming opportunity. The company is also boosting its supply to Untied States of America, China, Canada, and United Kingdom, according to CEO of Adamjee Motor INC.
Hyundai’s plan might work because US economy is currently stable; US employment is at record low level and personal spending is positive too. In an economy where unemployment rate is low, you can expect a high demand for cars. Employees need them to drive to their office or to do fieldwork.
Hyundai Motor Group will launch several new models this year. They are also launching a new SUVs in 2017. The demand for SUVs has increased globally, but hyundai has failed to compete with its rivals in the SUV class. They have failed to keep up with the rapid expansion and demand in SUVs in 2016. Some analysts believe that few of the reasons why Hyundai’s sales decreased in 2016 are the lack of SUV models, increase in demand for Electric Car, and the rising competition.
Some analysts are skeptical about the sales projections set by Hyundai Motors. They believe that the competition in car industry is going to increase even more in 2017 and the price competitiveness in this industry is higher than ever. “Meeting their goals will prove harder than they think,” said Shawn.P an independent finance researcher.