- European infrastructure development paves way for sales growth from 2015
- Product Momentum 2017 to deliver medium-term goals in region
- Hyundai targets European market share of 5% by 2020
Hyundai Motor is preparing for significant growth in European sales from 2015 onwards, following a period of intense investment in its regional infrastructure. A combination of qualitative enhancements and new products will support the company’s aim to achieve 5% market share in Europe by 2020.
Allan Rushforth, Senior Vice President and COO of Hyundai Motor Europe, commented: “The primary aim for Hyundai in 2014 is to continue enhancing the quality of our operations in the region –laying the foundations for a new growth period from the middle of the decade.”
“Many European markets are over the worst of the economic crisis, but recovery will be slow, particularly in the first quarter. Recovering economies will fuel consumer confidence, helping Hyundai to achieve its qualitative targets and providing a firmer basis for profitability. As in 2013, we will continue to develop our sales organically rather than pursuing market share gains at any cost.”
In 2013, Hyundai invested more than €500 million into its operations in Europe, and opened two new facilities: a test centre next to the famous Nürburgring track and the purpose-built headquarters of Hyundai Motorsport in Alzenau, home of the Hyundai Shell World Rally Team. Hyundai also expanded its headquarters near Frankfurt and its production facility in Turkey, allowing for production of the New Generation i10 and raising the company’s European annual production capacity to 500,000 vehicles. Now, 95% of all Hyundai vehicles sold in Europe are designed and developed in the region, and 90% are now built in the Czech Republic and Turkey.
A recent economic and social report published by London Economics found that Hyundai’s growing presence is delivering increased benefits to Europe. More than 152,000 people in the region now owe their jobs to Hyundai, which annually contributes €1.3 billion in taxes to European governments and purchases €2 billion in supplies from European companies for its Czech factory.
Hyundai’s aim to achieve 5% market share by 2020 will be supported by Product Momentum 2017, which will see the launch of 22 new models and derivatives in Europe during the next four years. The programme’s first model, New Generation i10, went on sale in late 2013 and the second, all-new Genesis, launched at this week’s North American International Auto Show (NAIAS), will be available in limited numbers in selected European markets later in 2014.
Hyundai took a 3.4% share of the European new car market in 2013, according to figures released by European automotive industry body ACEA. During the same period the overall market decreased by 1.8%. Registrations of Hyundai cars numbered 422,930 – 2.7% less than in 2012.
