The world’s fifth-biggest automaker, Hyundai Motor of South Korea, is aiming to boost vehicle sales by 10 percent this year but growth is seen easing from 2010’s 24 percent expansion because of an uncertain global economic outlook.
Tong Yang Securities analyst Ahn Sang-jun said, “Hyundai Motor Group’s target appears to be conservative and fully achievable.”
“Sales growth will be slowing because of a high base effect during the 2009 downturn, but Hyundai will still outperform the market, which is expected to grow 7 percent this year led by China and the United States.”
Hyundai Motor Group said on Monday it would target sales of 6.33 million cars in 2011, up 10 percent from 5.75 million units sold in 2010.
The global auto industry showed a solid rebound until the first half of 2010 from the industry’s worst ever downturn, but has started losing steam because of the euro zone debt crisis and as the U.S. economy struggles with weak consumer spending.
China, a major bright spot, is expected to face slower growth after the end of tax incentives for small cars starting this month, although its growth is expected to remain relatively high compared with mature markets.
Still, analysts say that Hyundai, the world’s No.5 auto maker along with affiliate Kia and one of the top performers during the crisis and sales slump that followed, should continue to outperform its peers and further gain market share, driven by new models and its strength in compact cars.
Analysts said that limited production capacity is likely to keep Hyundai Motor from boosting output sharply.