South Korea's largest carmaker, Hyundai Motor Co Ltd, posted a steeper-than-expected 23 percent decline in domestic sales in May as competition stepped up, pulling its shares to a three-week closing low.
Hyundai, one of the top global performers during the financial crisis and the sales slump that followed, continued to post a rise in overseas sales in May. But it was the sole Korean automaker with falling local sales for two months in a row in the face of new model launches by affiliate Kia Motors Corp and aggressive marketing of imports by rivals such as Toyota Motor Co.
"A second consecutive fall in domestic sales is quite worrying, although year-ago comparison numbers were relatively high," said Lee Sang-hyun, an analyst at NH Investment & Securities.
"It was hit by aggressive marketing by rivals and new model launches by Kia and Renault-Samsung and those factors may continue to depress domestic sales, although Hyundai plans to introduce new models later this year."
Hyundai lowered the price of its Genesis sedan from today by dropping some of its more expensive options as foreign cars, including Daimler's Mercedes-Benz, gain ground at more affordable prices.
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