Hyundai summons efforts to expand dealerships in ChinaHyundai Motor will continue focusing on China as it plans to increase dealers in the world’s largest auto market.
In a report released at its general shareholder’s meeting yesterday, Hyundai Motor Group Chairman Chung Mong-koo said the company will try to expand its presence in emerging markets, especially China.
“With a sluggish global economy and a financial crisis in Europe, the market environment is expected to be difficult, but the company will focus on securing competiveness for the future through quality growth.”
Hyundai’s market share was 6.7 percent in China while its small affiliate Kia Motors had a 3.8 percent market share after the two companies sold a combined 1.33 million vehicles there last year.
The two companies have also been doing very well this year. Hyundai sold 177,216 units in January and February, up 46.4 percent from a year earlier. Kia sold 91,712 units in first two months, which is a 27.9 percent on-year increase.
To further push sales, Hyundai Motor will first expand its dealers from 802 to 860 this year, focusing on China’s middle and west regions.
To upgrade its services and enhance communications, the automaker invited 104 salesmen working for Beijing Hyundai Motor, a joint-venture between Hyundai and Beijing Automotive Group, to come to Korea from last Tuesday. The Chinese salesmen, who sold an average of 193 vehicles each last year, visited Hyundai headquarters and its Asan plant in South Chungcheong.
At the shareholders meeting, Hyundai Motor president Kim Choong-ho disclosed a detailed map on how the company will secure sustainable growth.
“We first need to overcome the currency risk that was raised by strong won,” Kim said. “Reducing costs and overseas market expansion will be the key.”
By Joo Kyung-don [email@example.com]