Hyundai Motor Co (005380.KS), South Korea's top carmaker, on Tuesday said it has raised its 2009 target for sales in China for a second time because of stimulus measures by the Chinese government to boost demand and as the company plans to launch new models.
Hyundai, the world's No.5 carmaker along with affiliate Kia Motors Corp (000270.KS), said in a statement that its Chinese unit aimed to sell 450,000 cars this year, 12.5 percent higher than its previous target.
In April, an executive of Beijing Hyundai said the company had lifted its sales target in China for this year to 400,000 units from 360,000, compared with 294,506 in 2008.
The unit has posted brisk sales so far this year following China's measures to bolster car demand. Our new models will help us achieve higher sales there, a company official told Reuters by telephone, asking not to be identified as he was not authorised to speak to the press.
Hyundai is expected to beat the new target easily as Hyundai has been a major beneficiary of Beijing's stimulus measures with the Elantra compact car. Hyundai is adding another model, the i30, to take advantage of the steps, said Mihael Sohn, an auto analyst at Woori Investment & Securities.
Beijing Hyundai, a 50-50 joint venture with Beijing Automotive Industry Holdings, sold 257,003 cars in the first half of this year, up 56 percent from a year earlier, according to Hyundai.
Beijing Hyundai plans to launch a China-exclusive model of the Sonata mid-sized sedan and the i30 hatchback in the second half of the year.
Hyundai shares ended down 0.53 percent at 74,400 won, on Tuesday, underperforming a 0.54 percent gain in the broader market . (Reporting by Cheon Jong-woo; Editing by Chris Lewis)