SEOUL (Reuters): Hyundai Motor Co (005480.KS), South Korea’s crest auto manufacturer stated Sunday it had diminished its local sales target for this year by 6% as high oil and gasoline prices are disturbing badly to the consumer’s demands in Asia’s fourth largest economy.
Meanwhile, KIA Motors Corp (000270.KS) and the country’s No.2 car producer alleged it had increased its household sales target by 11 % accessed by the reputation of its Fuel-Efficient-Mini-Car and new models get underway.
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Hyundai which is controlling about half of the South Korea’s car market said in a statement, “we have the solitary goal of selling about 630,000 automobiles in the Higher-Margin-Domestic-Market which is compared by its earlier sales of 670,000 units.
The manufacture of Sonata Sedan and the Santa Fe Sport Utility Vehicle (SUV) sold a revised 625,275 automobiles in last year South Korea.
We have decreased the local sales target as the outlook is not looking clear. South Korea’s auto companies have been stricken by the weakest consumer responses due to rolling oil prices, according to Hyundai official.
In June, domestic sales of South Korea’s five auto makers fell by 7.5 % from a year earlier as higher oil prices and declining consumer reactions smacked demand for new models particularly SUVs and Korea Automobile Manufacturers Association data showed.
Hyundai’s domestic sales diminished by 14.6 % from a year ago last month, while it sales for the whole of the first half increased by 4.8 % to 318,756 units, alleged by the company.
Local sales of Hyundai and other South Korean auto makers are projected to linger lethargic in coming months as fuel prices are expected to boost more, according to economists.
An economic retard and inflationary cycle are also estimated to weigh up demands.
South Korea’s annual inflation in June increased and reckoned a huge change in decade, demolishing consumers’ non-refundable incomes, and the central bank estimated the slowest economic growth since 2005 due to high product prices.
Kim Dong Jin, the Hyundai’s Vice Chairman commented in an interview, “We are depressed about a weaker economic growth and sluggish local consumptions due to higher oil, CNG, gasoline and commodity prices”.
Hyundai, the world’s No.5 auto manufacturer working with Kia had been declining by 14 % since June.
Global-Auto-Makers are getting devastated because of high-ceilinged prices of oil and raw materials which diminished the U.S. economy and prevailing global inflation.
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