Hyundai Motor Co, South Korea’s biggest automaker, expects global industrywide vehicle sales to fall at least 7.7 per cent next year as a worldwide recession saps demand.
Sales may fall below 60 million from an expected total of about 65 million this year, Vice Chairman Choi Jae Kook told employees today in Seoul.
“Next year will be a critical time for all automakers as there could be a big industrywide shake-up” amid slowing sales and overcapacity, Choi said, according to company spokesman Ki Jin Ho. Global industry capacity stands at about 90 million vehicles a year, Choi said. That is at least 50 per cent more than Hyundai’s sales forecast for next year.
Hyundai and affiliate Kia Motors Corp have curbed production as US auto sales have dropped to the slowest pace in 26 years, while demand is also cooling in Europe, China and other emerging markets. Toyota Motor Corp and Honda Motor Co have taken similar steps and also slashed earnings forecasts.
“Even Toyota is predicting an operating loss, which was unthinkable before,” Choi said. Toyota expects its first annual operating loss in 71 years, it said earlier this month.
Hyundai’s export orders for January are poor so far, so the automaker needs to focus on sales and marketing, Choi said. The carmaker and Kia earlier this month forecast sales of 4.2 million vehicles this year, missing a 4.8 million target.
Hyundai and Kia have a combined capacity of 5.3 million vehicles a year, according to company data. The automakers are due to announce 2008 sales data on January 2.