After making solid gains in 2009, South Korean automakers Hyundai and Kia are predicting more gains in market share in 2010 as they roll out more new vehicles.
John Krafcik, Hyundai Motor America’s acting president and chief executive, said Thursday he expects car sales in the United States to grow next year, and Hyundai’s market share to grow with it.
“Sales should be up about eight percent to 10 percent next year,” he said. “The first and second quarter will be more like this year but things should pick up in the third quarter,” Krafcik said.
Overall sales in the US market should grow beyond 11 million units in 2010. Hyundai’s market share also will continue to grow, he said.
Hyundai, which sold over 401,000 cars so far in 2009, boosted its market share by a third this year and more gains are expected next year with introduction of the all new 2011 Sonata and new Tucson.
Both models were unveiled during the press previews leading up to the official opening of the Los Angeles auto show Friday.
The Sonata was designed to compete in the mid-sized segment, which is at the heart of the US car market.
Scott Magnusson, Hyundai’s director of product planning, said the new Sonata offers efficiency, excellent packaging and solid driving dynamics at less than $20,000. “But it’s also well styled,” he said. “You still have great efficiency and great packaging and not have to drive a boring car thanks to our fluidic styling.”
The same sculptural styling also was used in the design of the new Tucson, which Hyundai hopes will appeal to consumers who in the past have tended to go for the major Japanese brands — Toyota, Honda and Nissan.
“We’re being cross shopped much more frequently now with the Japanese,” said Magnusson.
“Both vehicles are very, very nice both inside and out,” said Stephanie Brinley, an analyst with Auto Pacific.
Tom Loveless, vice president of sales for Kia Motor America, a Hyundai subsidiary which markets its own brand in the US, also said the value message resonates with US consumers.
Kia also has posted double digit sales increases since mid-summer and will finish the year with a substantial increase in market share, Loveless said.
Kia’s biggest market share-gains have come in the northeastern United States, where it as jumped 80 percent.
Loveless said Kia also has added dealerships, placing some on prime real estate in major urban areas that were abandoned by other carmaker.
He said he expects Kia to make greater gains in sales and market share next year as it rolls out new models.
During the LA Auto Show preview, Kia rolled out the 2011 Sorento, which is being built at a new Kia assembly plant in West Point, Ga.
The introduction of Kia Soul and Kia Forte earlier this year also raised consumer awareness of the Kia brand with their aggressive styling, Loveless said. “The Soul was a real game changer for us,” he said.
Ed Kim, an analyst with Auto Pacific, said the styling on the Sorento is more conservative than the Soul or the Forte but it is still solid and the vehicle has been designed to reflect American taste and preferences.
So far this year, Hyundai Group sales have grown by more than 6 percent in a soft market and Kia and Hyundai combined now hold nearly 6.2 percent of the US market, the highest share ever, according J.D. Power & Associates.
Hyundai’s market share has grown to 3.76 percent from 2.58 percent in 2008, while Kia’s has increased to 2.41 percent from 2 percent in 2008.
