Hyundai builds on success

The company and Kia share European technologies and facilities, but they maintain individual model and marque identities as their presence strengthens.

“Rather than it being a difficult period for us, we have had a very good 12 months,” said Allan Rushforth, Vice President, Hyundai Motor Europe. “As we came out of 2008, 40% of our sales mix was SUVs, and with the arrival of CO₂-based car tax in many European countries, our business was under pressure. But fortunately we were on the point of introducing new designs with powertrains that guaranteed low CO₂ able to meet the downsizing trend. So by the end of March 2009, our sales were 12% up in a market that was 17% down. Twelve months later they are 24% up in a market that is just 11% up on 2009, thanks to our i10, i20, and i30 models.” These are small hatchbacks that fit neatly with government scrapage schemes and powertrain downsizing trends.

Kia (the companies together form the Hyundai Kia Automotive Group) was also fortunate; in the past 12 months, its market share in Western Europe rose 0.2% to 1.9% (April 2009 vs. April 2010) thanks to models such as the Venga, which is built alongside Hyundai products in the shared Czech Republic plant at Nošovice. Kia also benefited from the government-backed scrappage schemes that boosted sales.