Hyundai Motor expects 9.3 pct rise in 2003 sales

SEOUL, Sept 16 Reuters reported that Hyundai Motor Co expects sales in 2003 to rise to 27 trillion won ($22.66 billion) from an estimated 24.7 trillion won this year, South Korea's largest automaker said on Monday.

The automaker said it aims to rev up output to counter an expected rise in the Korean won and other negative factors.

"That is our latest estimate, but it is subject to change since we have to see how external conditions change by December," Hyundai Motor spokesman Jake Jang told Reuters.

"Total vehicle sales could rise next year to more than two million units," he said.

Hyundai expects to sell 1.88 million vehicles this year.

After mid-year sales of 12.3 trillion won, Hyundai is on track to meet an analysts' 2002 forecast of 24.65 trillion won, a poll by Multex Global Estimates showed.

Analysts have forecast 2003 sales of 25.75 trillion won.

"We will have to raise automobile prices next year as the won is expected to strengthen, while competition heats up," Jang said.

He said nothing had been decided regarding a possible cut in sales incentives offered overseas which the Korea Economic Daily reported on Monday.

The newspaper said Hyundai would raise prices of cars sold in South Korea by five to seven percent, while cutting back on incentives overseas.

SHORTER WORK WEEK

Hyundai has posted robust increases in net profit and sales since late last year, aided by a government cut in luxury taxes aimed at boosting consumption.

But the tax cut expired last month, while the won has strengthened about nine percent against the dollar since mid-April, posing a risk to Hyundai's export price competitiveness.

Hyundai could also see margins squeezed if South Korea implements a five-day work week now being studied which would eliminate Saturday half-days.

In addition, it faces revived competition from Daewoo Motor as General Motors prepares to launch a joint venture to run the company this year.

Smaller rivals Renault Samsung Motors Inc and Ssangyong Motor Co are also offering new models.

Hyundai Motor shares were down 0.3 percent at 33,400 won at 0102 GMT, while the broader stock market index <.KS11> was down 0.69 percent.

U.S.-German automaker DaimlerChrysler AG owns 10 percent of Hyundai.