Hyundai-Kia Motors looks to regain lost market share in China

Aug 20, 2015, 08:00 am

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Beijing Hyundai's manufacturing plant. Hyundai-Kia plans to release new models to regain its market share./ Source from Beijing Hyundai

By Hong Soon-do, Beijing correspondent, AsiaToday - Hyundai-Kia Motors is planning to release new models and strengthen its marketing after sales in the Chinese market recently plunged. On current plans, the carmaker is expected to rapidly regain double-digit share that it lost in China.

A senior executive of Beijing Hyundai Motor, the Chinese affiliate of Hyundai-Kia Motors, said on Wednesday that the plan begins with urgent production and launch of new Tucson by September, which is the busy season of the auto industry. The original plan was to release the SUV in December, but the company decided to release at an earlier date. Moreover, they will release new K5 in October to diversity its models to the market. Lee Sang-eun, general manager of Beijing Hyundai Motor, said, "Between September and October is the busy season in the automobile industry. We hope it will help the company get over its recent slump. We believe the release of new models will change the atmosphere."

Hyundai-Kia will also strengthen its promotional activities. It will gradually increase the number of dealerships in China from the current 1,700 to 2,000. Moreover, it plans to maintain its discount policy in the future just like its rivals. It seems price cuts have pushed up the sales for the company already and will likely improve its performance in September.

Major personnel changes is also expected to help the company renew its atmosphere and regain the market share. Sichuan Hyundai Motor's Sales Division Vice President, Tan Tao-hung, was named new head of China business strategy for Hyundai-Kia. Lee Byung-ho, vice president at Hyundai WIA, will be responsible for handling Hyundai's main joint venture in China, Beijing Hyundai Motor. Noh Jae-man, former CEO of Beijing Hyundai Motor, will be reassigned to advisory role.

Last month, Hyundai-Kia Motors sold a total of 84,000 units in China, down 30 percent from a year earlier. This is why it is gearing to regain lost market share. And the result will come out soon. At this time, the situation is not pessimistic.

#Hyundai-Kia Motors #China 
Copyright by Asiatoday