Hyundai And Kia Are Aiming High For 2011

Not content with their success in 2010, Hyundai and Kia are looking ahead to 2011 with optimistic stares. The Korean automakers have said that they are anticipating a 10 percent increase in demand.

“Hyundai will post lower volume growth this year, but still outperform the market. Hyundai does not want to be another Toyota which was hit by quality issues following fast volume expansion,” Lee Sang-hyun, an analyst at NH Investment & Securities, told Reuters.

For 2011, Hyundai is looking at shifting 6.33 million vehicles, up from 5.75 last year. This goal shouldn’t be terribly difficult, considering the success of the Sonata and the gorgeous yet-to-be-released Elantra.

Last year, Hyundai managed to sell 3.6 million cars, up 16 percent, while Kia sold 2.1 million, up an astonishing 40 percent.

"Hyundai Motor Group's 2011 target appears to be conservative and fully achievable," Tong Yang Securities analyst Ahn Sang-jun said.

Despite their success in North American and Asia last year, Hyundai are facing issues that are out of their control, such as the tough exchange rate.

“Although the South Korean currency remains a major factor, Hyundai’s earnings are expected to improve this year on the back of new models, which will help increase selling prices,” Sang-hyun said.

Last year was a big year for the auto companies and analysts are predicting that December could be the third straight month that US auto sales held above 12 million vehicles on an annualized basis.

Hyundai are expected to add to their vehicle lineup, with 10 new models coming out this year globally, including the FS utility vehicle that will shown at the North American International Auto Show.

Hyundai is currently the world’s fifth largest automaker and is expected to only get stronger now that the auto market seems to be on the upswing.

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