Hyundai Motor Surpasses $10 Billion in Exports

Seoul South Korea November 25, 2003; Seo Jee-yeon writing for the Korea Times reported that Hyundai Motor, the nation's largest carmaker, has surpassed the $10-billion mark in annual exports to be the first domestic automaker to do so.

With the achievement, it will receive the $10 Billion Export Tower award at the 40th Trade Day ceremony, which will be held Friday at the Convention and Exhibition Center (COEX) in southern Seoul.

The government presents Export Towers annually to companies exporting goods worth between $1 million and $25 billion at the Trade Day ceremony, which is co-hosted by the Ministry of Commerce, Industry and Energy and the Korea International Trade Association.

Winners are picked on the basis of their export performance from July last year through June this year.

``Hyundai Motor became the winner of a $10 billion Export Tower, posting $10,073,843,000 in exports in that period. The export record is a 34 percent rise from the same period a year ago,'' the KITA said.

Outbound shipment of Hyundai Motor has continued to increase since June, and the company recorded an all-time high of 146,363 units in exports last month.

Hyundai Motor towered above other exporters in 2002 with its exports exceeding $7.7 billion. But it ranked third in exports this year after $25 Billion Export Tower awardee Samsung Electronics and $15 Billion Export Tower awardee LG Corporation.

As part of efforts to boost exports, the company has strengthened its regional management system to quickly respond to changes in varying markets around the world.

Along this line, the company has increased overseas plants in its key markets, including India, China and the United States.

These efforts are part of its four strategies for global management with the goal of becoming one of the world's top five auto giants by 2010, which were announced at the 2001 Tokyo International Auto Show. These strategies are core competency strengthening, strategic auto type development by export market, brand value increase, and localization.

For three years after announcing its vision and strategies for future growth, Hyundai has achieved marked business performance in the U.S., the world's largest automobile market, in particular, with value-added upscale car brands like the Santa Fe, New EF Sonata and Grandeur XG.

Sport utility vehicle Santa Fe, one of Hyundai Motor's best-selling lines in the U.S., was designed on the basis of U.S. customer demands.

The EF Sonata and Grandeur XG also gained popularity, garnering kudos in evaluations and reviews by U.S. media and consumer satisfaction surveys.

The company has the goal to sell one million Hyundai vehicles in the U.S. by 2010.

For that goal, the company announced it would build a $1-billion assembly plant in Montgomery, Alabama by next June, its first plant in the U.S., which will produce 300,000 cars a year.

``A business success of Hyundai in the U.S. mid- and large-sized sedan market also contributes to raising the local brand value of cars,'' the KITA said.

The company's localization and brand building drive got a boost this year in Europe, the world's second-largest car market.

Hyundai Motor set up its new European headquarters building in Russelsheim, Germany on March 5 this year, stepping up its drive to strengthen sales and marketing in Europe.

It also unveiled its new European-style super-compact car Getz at the Geneva Motor Show in March, with an annual regional sales target of over 133,000 units for the model.

Hyundai hasn't overlooked the Japanese market, the most conservative vehicle market for foreign cars in the world.

Hyundai established its Japanese branch to penetrate the insular market, competing with world-renowned Japanese carmakers.

In addition, the company has set its eyes on the fast-growing Chinese market, which is expected to create demand of 10 million units after 2005.

In 2002, the company set up joint venture firm Beijing-Hyundai Motor with a local partner and plans to expand production capacity to 600,000 units over the next five years from the current 50,000 units per year.