12 Mar 2021
Posted in Automotive
Right mix of strategies to support Hyundai’s rebound in China, says GlobalData
Following the news that South Korean automakers Hyundai and Kia target to increase China sales by 23% in 2021;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers her view:
“Hyundai Motor Group (HMG) has been going through a bumpy ride in China with both sister companies Hyundai and Kia witnessing decline in sales since 2017. Hyundai’s sales target for 2021 and other latest developments indicate that the company is committed to strengthen its foothold in the world’s largest car market.
“Hyundai has made major operational and strategic changes such as new model launches with mix of IC engine and electric vehicles and, enhancing local production, marketing, and distribution to reclaim its market position in China. The company last year announced the launch of over nine models by 2021, some of which are already in the market. This includes a mix of compact cars, SUV and premium vehicles, and premium brand Genesis. The company, along with sister company Kia, aims to sell 817,000 vehicles this year, 23% up from 2020.
“Hyundai’s electrification vision for China is also expected to support the company’s growth in the country. With establishment of its first overseas hydrogen fuel cell plant in China, the company aims to produce 6,500 fuel cell systems per year, supporting government’s target of 1 million hydrogen fuel cell vehicles by 2035. China is a key market for Hyundai both from manufacturing and sales standpoint and the company is going with the right mix of strategies. Right positioned products, similar to other markets such as India, are expected to play a key role in the success of the company in China.”