While there are a lot companies that are hopeful to have better results this year 2015, Hyundai Motor Co and Kia Motors Corp, Hyundai’s affiliate, are both expecting this year to have the weakest sales growth in the past 12 years. The weak sales forecast is said to be due to capacity constraints. Another factor is the weaker value of yen that can give the companies’ Japanese rivals an excellent advantage in key markets.
Hyundai and Kia are the fifth largest automaker in the whole world. These companies said they are targeting to sell a total of 8.2 million vehicles in this year alone. Though it is a 2.5 percent rise compared to last year’s, it is still considered to be the smallest sales growth for 12 years since the year 2003.
The Hyundai-Kia started to feel the sales growth slow ever since Chung Mong-Koo, who is the company’s chairman, put an unofficial moratorium in order to put emphasis on quality. This incident happened two years ago.
Despite the fact that sales growth for Hyundai-Kia is slowing down, they are still eager to build their factories in countries of Mexico and China. However, as of the moment, there will be no production coming from these plants. The plants are anticipated to start production in the late 2016.