Hyundai and Kia issue weak 2015 forecast

Hyundai and Kia, South Korea's largest carmakers, forecast their weakest sales growth in nine years as they run out of capacity to increase output and competition intensifies in major markets.

The companies' combined deliveries would rise 2.5 per cent to 8.2 million vehicles in 2015, Chung Mong Koo, chairman of both carmakers, said. That would be the slowest growth since 2006. The forecast was in line with the median estimate of 8.2 million units in a Bloomberg News survey.

Hyundai and Kia would “actively respond” to global economic uncertainties and a weaker yen that gave Japanese competitors an advantage and would be able to “easily” meet the 2015 target, said Mr Chung.

The carmakers plan to increase production by 38 per cent in China by 2018 to meet demand. – (Bloomberg)