[blackwasp]

Hyundai Motor Co. has reported its first quarterly loss in eight years as the company's vehicle sales in China have declined.

Hyundai reported a loss of US$ 114.95 million for the fourth quarter of 2018. It has been reported that it is the company’s first net loss since 2011. It is also the sixth consecutive fall in annual profits for Hyundai.

China sales for the South Korean carmaker fell by 23% in the fourth quarter. While the company had targeted annual sales of 9,00,000 units, it could manage to sell only 7,90,000 units. In 2017, the company sold 7,85,000 vehicles in China. Hyundai's total annual production capacity in China stands at 16,50,000 units.

It is reported that some of the reasons for this fall include the Sino-US trade war, phasing out of tax cuts for smaller cars, weakness in emerging market currencies and lack of attractive models in China. Poor diplomatic relations between China and South Korea have also affected consumer interest in South Korean products.

Sales in the US market have also declined 1%, whereas the market grew by 0.6%. Sales of the redesigned Santa Fe have fallen by 12% for the year. Hyundai and Kia combined are targeting a 3% sales growth in 2019.



Source: AutoNews

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[i74js]

Will this have an impact on their India strategy with respect to introduction of EV lineup and also the entry of Kia?

[volkman10]

Hyundai Motor to cut China jobs after sales slump.

Link

[GTO]

Originally Posted by blackwasp

the company sold 7,85,000 vehicles in China.

This, more than anything, tells us about how weak Hyundai is in China. As a market, China is 6 - 7 times bigger than us, but Hyundai's sales there are just 25% higher than in India.

Originally Posted by i74js

Will this have an impact on their India strategy with respect to introduction of EV lineup and also the entry of Kia?

Not at all. If anything, the weak performance of other markets will make Hyundai & Kia double up their efforts in India which is one of the brightest spots for the company.