December
23rd, 1999
Hyundai sales on target for `99 - and the new millenium
Hyundai Motor Company is heading for its most successful performance worldwide since
the onset of the Asian financial crisis, following the release of November sales figures.
With Korean domestic sales in November up by 63 per cent from last year to 58,024 and
export figures continuing to show a healthy performance at 67,901, the company has sold
1,158,174 vehicles so far this year, indicating that the 1999 target of 1.25 million
vehicles should be easily reached by year end.
Sales for the year so far show a 46 per cent increase over the same period last year
and by the year’s end the company’s performance will almost recover to the
pre-crisis 1997 figure.
Close to record year
From the strong position established this year
Hyundai is looking to take another step forward in 2000 and has already announced its
target for the year as being 1.5 million units – surpassing the previous record year
of 1996 when 1.36 million units were sold.
Hyundai car sales at home and abroad continue to be led by the EF Sonata and the Verna
– sold as Accent overseas. Additionally the November figures were strengthened by the
newly introduced Trajet MPV which is due for export sale next year.
Commercial vehicle sales also held up strongly, allowing Hyundai to post major
increases over 1998 in all vehicle sectors.
Passenger car sales in November were up 36 per cent over 1998 whilst RV and MPV sales
were up 347 per cent. Small, medium and large bus sales increased by 85 per cent and truck
sales were 31 per cent up on last year.
In overall terms exports continue to lead the company’s business with the 11
months showing a total of 638,906 units – 30 per cent up on the same period last
year.
Domestic sales in the year to date totalled 519,268 representing a 72 per cent increase
over the figure for the same period in 1998.
Quality and value
Commenting on the performance Hyundai Motor
Company president, Lee Kye-Ahn said: "The faster than expected recovery of the
domestic market has made a significant contribution to our improved performance this year.
"However the increasingly perceived quality and value of Hyundai vehicles has
helped us continue to build our brand and our sales in export markets – particularly
the United States. We expect to see that trend continue during next year as more of our
new vehicles such as Accent, Trajet and Santa Fe become available," he added.
Ambitious targets…
Hyundai has set an ambitious worldwide target for the
company's performance in 2000.
Aiming for record overall sales of 1,670,000 - including domestic Korean sales of
720,000 and exports of 950,000 - Hyundai is looking to increase its turnover to 19.3
trillion Korean won.
Moving forward from the strong base established by the restructuring and re-financing
activities of 1999, Hyundai will seek to further reduce its debt to equity ratio and
increase its net profit level, by as much as 84 per cent over the profit likely to be
recorded in 1999.
Best sales since `96?
The new sales target for 2000 will represent Hyundai's best
overall performance since 1996, when the company produced 1.35 million units, and although
domestic sales will not quite reach the record 795,000 in the same year, the export figure
will set another record for the company.
By the end of this year Hyundai's debt to equity ratio is expected to fall to 180 per
cent and during 2000 the target will be to reduce the leverage figure to 169 per cent.
Based on a turnover expectation 19.3 trillion won Hyundai is aiming to retain four per
cent as net profit which will represent an increase over this year's expectations of 84
per cent.
This target represents a remarkable turn-around from 1998 when Hyundai achieved only
947,000 sales and a turnover of just 8.6 trillion won because of the Asian economic
crisis. In 1998 Hyundai recorded a net loss of just over 33 billion won.
Competitive edge
Chairman Chung said: "This New Millenium Plan has been
based on the financial restructuring and improved business results of 1999. I am
determined that the plan for 2000 will give the company a competitive edge against
international automakers and we shall continue efforts in technological development and to
provide the highest levels of customer satisfaction."
Although final figures for 1999 are yet to be recorded, Hyundai is expecting total
sales to reach 1,260,000 units world-wide with 600,000 sales in the domestic market and
660,000 in export markets. Turnover is expected to total 14.2 trillion delivering a net
profit of 420 billion won.
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