Hyundai Motor Co. are expecting continued challenges in the American market where sales have already been slow due to lack of SUVs, leading to the worst annual earnings in 7 years. The automaker has been struggling with a long product cycle, heavy reliance on sedan sales in both the U.S. and China, and a tighter local currency that has been hurting oversea profits.
Working with Kia Motors has also resulted in missing their global sales target for a third year in 2017 as business in China came under pressure from tensions between Beijing and Seoul over South Korea’s deployment of a U.S. anti missile system.
Hyundai aims to boost China sales by 15% to 900,000 vehicles this year as well as revive U.S. sales momentum by introducing new models that are fit for the current market. The company wants to target their focus on reducing their high inventory ahead of new model launches in the U.S. later this year. Hyundai also plans to introduce their newly redesigned Santa Fe as well as 7 other SUVs by 2020 since U.S. sales dropped 12% in 2017 despite a 25% surge in incentives.