Hyundai,Kia see slower sales in 2012

Hyundai Motor and affiliate Kia Motors aim to boost global vehicle sales by 6 per cent this year to a combined 7 million vehicles

Hyundai Motor and affiliate Kia Motors aim to boost global vehicle sales by 6 per cent this year to a combined 7 million vehicles,which would mark a slowdown for a duo that has enjoyed double-digit sales rises in recent years.

The South Korean automakers,which together rank fifth in global car sales,are unable to keep up with demand because of stretched production capacity. But they have refrained from boosting capacity sharply,instead focusing on improving product quality and profits.

Bigger rival Toyota Motor last month forecast a 20 percent jump in 2012 sales to a record 8.48 million vehicles,as it is recovering from output losses caused by natural disasters in Japan and Thailand last year.

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We will strengthen quality management we have continuously pursued,Chung Mong-koo,chairman of Hyundai and Kias parent group,said on Monday in his annual speech to employees.

The South Korean carmakers enjoyed sales gains in the US,Europe and other key markets last year when their Japanese rivals suffered from Japans earthquake and Thailands floods as well as the strong yen.

Hyundai and Kia sold 6.6 million vehicles in 2011,beating their earlier target of 6.33 million and up 15 per cent from the previous year.

In December,Hyundais global sales jumped 22 per cent and Kia sales rose 8 per cent from a year earlier,as strong overseas sales continued to offset declines in domestic sales. Hyundai is expected to report biggest year-on-year sales gains of about 40 per cent among automakers in the US.