Hyundai Motor reports strong overseas sales last year

Despite sluggish domestic sales, Hyundai Motor posted robust overseas performance last year due to higher sales and production abroad.

The popularity of Hyundai cars is growing not only in advanced markets including the U.S. and Europe but also in emerging markets such as the Middle East and Latin America.

The company blamed its weak domestic sales Thursday mainly on higher competition from rival models such as the K5 of Kia Motors and the SM3 of Renault Samsung Motor.

Exports grew 25.9 percent last year with sales of 1,881,805 units in six countries, with Chinese factories selling more than 700,000 units and those in India more than 600,000. A combined 3,612,487 cars produced in Hyundai’s domestic and overseas plants were sold abroad last year, accounting for 5.2 percent of the global car market.

Last year, the sale of Hyundai cars produced abroad accounted for 52.1 percent of all sales, a company record and up from 48.1 percent in 2009.

A Hyundai source said, “The rising popularity of our cars in overseas markets, as shown in the repurchase rate of Hyundai brands hitting a record high in the U.S., is the fruit of our efforts to provide top quality products.”

The carmaker seeks to sell 3.9 million units this year: 1.83 million manufactured at home and 2.07 million abroad, or about 100,000 more units for domestic plants and 150,000 more for overseas plants.

The company plans to sell 700,000 domestically produced cars in Korea and 1.13 million overseas. Its U.S.-based factories will make 330,000 units, those in China 720,000, India 605,000 and those in Turkey, the Czech Republic and Russia a combined 415,000.

Hyundai CFO Lee Won-hee said, “With the expected rise in demand in the U.S. and emerging markets, we’ll easily meet our target.”

The company aims to sell 590,000 units in the U.S. this year, or 330,000 produced in the U.S. and 260,000 shipped from Korea. This is 60,000 units more than last year’s 530,000.

Hyundai is optimistic that releases of its new cars such as the Sonata Avante, Accent and Veloster will continue growth. “We’ll raise brand value and profitability by stepping up efforts to sell our cars at the proper prices instead of increasing incentives,” Lee said.

The automaker’s sales volume in the world’s largest car market China is expected to fall, however, due to the Chinese government’s austerity policies.

Hyundai said its 15 overseas sales headquarters recorded surpluses last year and its financial arm is expected to reap huge profits from this year.