Hyundai-Kia Group: Declining profitability since 2013

New plants in China and Mexico to increase supply and mitigate won's appreciation

2014/09/05

• Summary
• Operating profit declining since 2013； revenue declining in 2014
• Korean won becomes stronger to KRW 1,020 to USD in August
• Time-limited strikes on base wages for overtime payment
• Overstated fuel efficiency for Hyundai models in Korea
• Hyundai-Kia's market share falls below 70% at home due to increase in imported vehicles
• Slight decrease in U.S. sales in 2013 with market share falling from 8.7% to 8.1%
• Shipment volume (wholesale basis)
• Building Chongqing plant in China and new plant in Mexico
• Sales Forecast by LMC Automotive: Hyundai Group sales to be 7.47 million units in 2017

Summary

 Hyundai Motor Company Group's shipment volume increased sharply by 1.07 million units year-on-year (y/y) in 2010, and by 855,000 units y/y in 2011. Since then, Hyundai shelved new plant construction plans in order to address quality control and other impending issues, focusing on internal improvement efforts.
 Hyundai and Kia registered an increase in operating profit and maintained a high performance level that overwhelmed other global OEMs in 2012 with 10.0% and 7.5% operating profit margin, respectively.
 However, the group faced a number of issues emerging from won's appreciation, tensions in labor-management disputes, overstatement of fuel efficiencies of their vehicles, and declining market shares in domestic sales resulting from rapid in-flow of imports. They were respectively a blow to the favorable business environment that has contributed to the group's rapid growth and high profitability in recent years. Won's appreciation, in particular, was the biggest blow that is now causing a sluggish growth in sales revenue and profits despite the increase in wholesale volume.
 Both Hyundai and Kia ended the year 2013 with the first decline of operating profit since they shifted to the K-IFRS reporting system in 2010. This trend continued through January-June 2014. Between the two companies, the decline of profit margin is larger for Kia that has a higher export ratio from Korea (Hyundai and Kia are still enjoying high operating profit margin in January-June 2014 at 9.1% and 6.3%, respectively).
 Hyundai-Kia Group's global production capacity at the end of 2014 will be approximately 8 million vehicles. Hyundai's new plant will start operations in Chongqing, China, starting in 2016 with annual capacity of 300,000 vehicles. In August 2014, Kia announced plans to build a new plant in Mexico with an annual capacity of 300,000 vehicles.
 Hyundai-Kia Group aims to strengthen their supply capacities and mitigate the impact of won's appreciation by supplying from new plants in China and Mexico. However, many of the adverse situations are still casting shadows over them.

Related report: Hyundai Group revises policy of rapid growth and prioritizes quality (Aug. 2013)

---

Operating profit declining since 2013； revenue declining in 2014

 Hyundai ended 2013 with 3.4% growth y/y in revenue and 1.5% decline y/y in operating profit. The company reported a slight decline in revenue at 0.3% and 5.8% decline in operating profit in January-June 2014. Hyundai reported 1.9% decline in revenue along with 13.3% operating profit decline in April-June 2014 during which the company suffered from won's high appreciation in particular. The market situation was worse for Kia that reported 0.8% slight growth in revenue along with 9.8% operating profit decline in 2013. Kia reported 0.9% decline in revenue and 17.8% decline in operating profit in January-June 2014. The situation even worsened for Kia, as it did for Hyundai, in April-June 2014 during which Kia reported 8.1% decline in revenue and 31.7% decline in operating profit.
 According to Hyundai, the company's sluggish growth is due to won's appreciation, decrease in production resulting from strikes, and tough competition in home market. Hyundai plans to strengthen quality, fuel efficiency and other basic performances of its vehicles to win top-class competitiveness in those areas.

Consolidated Results

(KRW Billion)

		2010	2011	2012	2013	2013 1H	2014 1H
Hyundai	Sales Revenue Operating Profit Margin (%)	66,985 5,918 8.8%	77,798 8,029 10.3%	84,470 8,441 10.0%	87,308 8,316 9.5%	44,551 4,275 9.6%	44,402 4,026 9.1%
	Recurring Profit Equity Earnings Net Profit	7,492 1,682 6,001	10,447 2,404 8,105	11,610 2,582 9,061	11,697 3,057 8,994	5,939 1,413 4,611	5,620 1,351 4,378
Kia	Sales Revenue Operating Profit Margin (%)	35,827 2,490 7.0%	43,191 3,499 8.1%	47,243 3,522 7.5%	47,598 3,177 6.7%	24,197 1,831 7.6%	23,980 1,505 6.3%
	Recurring Profit Equity Earnings Net Profit	3,323 982 2,698	4,722 1,337 3,519	5,164 1,414 3,865	4,829 1,320 3,817	2,440 617 1,965	2,385 788 1,900

Source: Consolidated statement of income from both companies
(Notes) 1.	In 2011, listed companies in Korea were required to shift from K-GAAP to K-IFRS accounting standard when filing their financial reports (above figures for 2010 have been converted into K-IFRS figures).
2.	The K-IFRS requires that all subsidiaries in which the parent company has more than 50% share are to be consolidated. Hyundai had 33.88% share in Kia as of December 31, 2013, and Kia is not fully consolidated in Hyundai's consolidated financial reports prepared based on the K-IFRS. An equity method is applied to Kia under which its equity profits are reflected in Hyundai's consolidated net profit.
3.	Kia's financial reports are also prepared based on the  K-IFRS standard since 2010.

---

Korean won becomes stronger to KRW 1,020 to USD in August

 KRW's exchange rate to the dollar fluctuated between KRW 1,100 and 1,200 after 2010. The won has grown stronger especially since April 2014. The exchange rate soared to around KRW 1,020 to the dollar toward the end of August, far higher than what is considered fair by exporters in Korea (KRW 1,073 to the dollar, see Note). The won's high appreciation is reportedly due to Korea's huge current account surplus (5th highest in the world at KRW 82 trillion in 2013) and in-flow of foreign money resulting from the unprecedented monetary easing among advanced countries.
 The won is also becoming stronger to the Japanese yen. The exchange rate rose from KRW 100 to JPY 7 in December 2012 to JPY 8 in January 2013 and to JPY 10 after June 2014.

KRW/USD Exchange rate at Hyundai

2008	2009	2010	2011	2012	2013	2014 1H
1,102.6	1,276.4	1,156.3	1,108.1	1,126.9	1,095.0	1,048.8

Source: Hyundai Motor Investor Presentation June 2014
(Note) The exchange rate considered fair by exporting companies in Korea was KRW 1,073 to the dollar in average as of May 2014 (according to Nihon Keizai Shimbun dated June 22, 2014).

---

Time-limited strikes on base wages for overtime payment

 In December 2013, Korea's supreme court reached a verdict that part of the bonus be included in the base wage that is used to calculate an employee's overtime payment.This court decision is the biggest issue in labor-management negotiations among all industries in Korea in 2014. Negotiations at Hyundai broke down and the labor union went into a time-limited strike at the end of August 2014 (the third year of strikes in a row).
 In March 2013, Hyundai management agreed to discontinue late-night shifts. The work hours were shortened by 3 hours and the new work hours were set to from 6:30 a.m. to 1:10 a.m. of the following day.
 The average salary among Hyundai's employees is said to be very high at KRW 94 million. Yet, it takes Hyundai 30 hours to produce a vehicle in Korea, which is nearly double the time required at plants overseas. It is said that Hyundai's plants in Korea are becoming less competitive because of these conditions.

Court decision and labor-management talks in Korea in 2014

Overtime pay to be calculated on a larger base	In December 2013, the Korean supreme court reached a verdict regarding overtime payment for employees. Conventionally, overtime payment and holiday work allowance in Korea was calculated based on the base payment (base salary and managerial allowance). The court decision demands that the fixed portion of bonus that is unaffected by individual or the company's performance be added to the base payment as the new base of overtime pay calculation.
	Many labor unions in Korea have taken legal actions about the range of normal pay and the court decision is expected to rule them. In some trial calculation, the labor cost will increase by KRW 2,500 billion a year across auto industries.
	According to JETRO's Seoul office, many Japanese companies operating in Korea feel that the court decision has a great impact on their business and that they would have to review their payment systems accordingly.

Labor-management negotiations in 2013

Pay raise	In September 2013, Hyundai's labor and management agreed to a monthly raise of KRW 97,000.
Maintaining production at home	They also agreed to maintain a production volume in Korea at 1.74 million vehicles and put priority on plants in Korea when producing all-new models. The labor union demanded a minimum production quantity in Korea as they feared that Hyundai was increasing production in foreign countries.
	This agreement will work as a constraint when Hyundai decides to reduce production in Korea and increase production capacities at overseas plants. It is said that the time required to produce a vehicle at Hyundai's plants is 15.4 hours in the U.S., 18.8 hours in China, and 30.5 hours in Korea.
Decreased production due to strikes	It is said that Hyundai's production quantity decreased by 130,000 units due to strikes in the spring and the summer in 2013. The low output is causing slow sales in the U.S. that has a high import ratio from Korea (36.1% for Hyundai-Kia Group in 2013).

Source: Nihon Keizai Shimbun September 18, 2013/December 19, 2013/December 28, 2014, Nikkei Sangyo Shimbun July 15, 2014, JETRO press release January 6, 2014
(Notes) After talks in 2012, Hyundai's labor and management agreed to abolish late-night shifts starting in March 2013. The conventional work shifts (10 hours each in the daytime and at night including two extra-work hours) were replaced by 8-hour early shift and 9-hour late shift including one-hour extra-work time. Work hours are between 6:40 in the morning and 1:10 in the morning of the following day. As a result, the total work time was shortened by three hours. Kia's labor and management also agreed to adopt similar work schedules.

---

Overstated fuel efficiency for Hyundai models in Korea

 In November 2012, Hyundai and Kia were accused of having overstated fuel efficiency of their vehicles sold in the U.S. market. Similar accusations were heard in 2014 about their vehicles sold in Korea.
 In August 2014, Hyundai faced USD17.35 million penalty fined by NHTSA for a delay in reporting a faulty brake.
 The 2014 J.D. Power Dependability Study was conducted in October to December 2013 counting the number of problems per 100 three-year old vehicles. It found 169 problems in Hyundai-brand vehicles. Hyundai came in 27th among 31 brands surveyed.

Overstated fuel efficiency found in 140,000 vehicles sold in Korea

Santa Fe	With the onset of overstated fuel efficiency in the U.S., the Korean Ministry of Land, Infrastructure and Transport (MOLIT) conducted a survey regarding fuel efficiencies of Hyundai and Kia vehicles. In June 2014, the MOLIT officially announced that 8.3% overstatement of fuel efficiencies was found with the 2000cc diesel-fueled Santa Fe model (rear-wheel drive with automatic transmission) produced after May 2012.
	Upon hearing the announcement, 1,500 people that had purchased the Santa Fe in July filed a collective lawsuit demanding a KRW 1.5 million compensation per vehicle. About 140,000 units of the applicable model had been sold. If all compensation demands are to be paid, they will add up to KRW 210 billion for Hyundai.
	In August, Hyundai corrected the published fuel efficiency of the Santa Fe from 14.4km to 13.8km per liter and announced that the company would pay up to KRW 400,000 per owner. The compensation money was calculated based on the difference between the overstated efficiency and the corrected efficiency and the psychological damage to the purchaser assuming that the car is driven for five years.
All-new Sonata	In the all-new Sonata premiere held in March 2013, Hyundai had announced the internally measured fuel efficiency of the gasoline-fueled version was 12.6km per liter. It was then corrected to 12.1km per liter according to the government's test procedure. There was nothing illegal about making the change but it is said it damaged the company's image again.

Source: Nihon Keizai Shimbun May 26, 2014/August 13, 2014, Nikkei Sangyo Shimbun July 16, 2014

Quality issues in the U.S.

USD 17.35 million fined by NHTSA

In August 2014, the U.S. DOT's National Highway Traffic Safety Administration (NHTSA) fined USD 17.35 million to Hyundai. The fine was due to a delay in notifying NHTSA, and announcing to all concerned, about a faulty brake found in approximately 43,500 units of the 2009 to 2012 models of the Genesis. Hyundai had received the faulty report in 2012 by the brake part suppliers but did not announce recalls until October 2013. The U.S. law requires automakers to notify NHTSA within five days after receiving a report about fault.

The faulty brake was caused by rusty parts which could lead to total loss of braking function. The same parts were delivered to GM as well and GM had received the faulty report by the supplier at the same time as Hyundai. GM conducted recalls before Hyundai.

Source: NHTSA Press Releases August 7, 2014, Automotive News August 11, 2014

J.D. Power Dependability Study

The 2014 J.D. Power Dependability Study was conducted in October to December 2013 covering problems experienced by original owners of the 2011 models. The overall dependability was rated according to the number of problems experienced per 100 vehicles. The study found 169 problems in Hyundai-brand vehicles. Hyundai ranked 27th among 31 brands surveyed. Many of the problems were found in the Sonata and the Elantra that were released as all-new 2011 models. Kia ranked 19th with 151 problems. The auto industry's average was 133.

J.D. Power Initial Quality Study

The 2014 J.D. Power Initial Quality Study was conducted in February to May 2014 counting problems experienced by original owners of the 2014 models during the first 90 days of ownership. Both Hyundai and Kia were rated high with Hyundai ranking 4th with 94 problems and Kia ranking 7th with 106 problems among 32 brands surveyed. The Hyundai's 2014 models are rather old and problems had been corrected in most of the Hyundai vehicles by the time of the Study.

---

Hyundai-Kia's market share falls below 70% at home due to increase in imported vehicles

 The Hyundai-Kia Group has a high market share in Korea that exceeds 70% along with high margin percentage. The high share was said to be the source of funds behind the Group's brisk investment in foreign countries. However, their sales in 2013 at home decreased by 50,000 y/y to 1.09 million units with the share falling below the 70% mark to 69.8%. The declined sales were due mainly to the increase in imported vehicles that sold 191,000 units in 2013. The market share of imported vehicles rose above the 10% mark for the first time to 12.1%. The market share of imported vehicles rose to 14.4% in January-June 2014 with that of the Hyundai-Kia Group falling to 67.9%.
 The surging import in Korea owes in part to the lowered import duties after the FTA was concluded with the U.S. and EU, and also to the won's appreciation.

Hyundai-Kia's sales in the Korean market

	2009	2010	2011	2012	2013	2013 1H	2014 1H
Hyundai Kia	702,678 412,752	659,565 484,512	684,157 493,003	667,777 482,060	640,865 458,000	325,611 226,404	346,486 218,764
Hyundai-Kia Total Market share	1,115,430 76.2%	1,144,077 72.9%	1,177,160 73.9%	1,149,837 73.5%	1,098,865 69.8%	552,015 72.7%	565,250 67.9%
Other domestic OEMs	278,570	321,349	297,477	261,020	284,493	125,427	147,550
Imports Market share	69,002 4.7%	104,977 6.7%	117,592 7.4%	154,407 9.9%	191,066 12.1%	81,492 10.7%	119,478 14.4%
Total sales in Korea	1,463,002	1,570,403	1,592,229	1,565,264	1,574,424	758,934	832,278

Source: KAMA
(Notes) 1.	Hyundai-Kia Group's market shares and those of imported vehicles are percentage to the vehicles including imported vehicles in Korea.
2.	Imported vehicles into Korea in January-June 2014 included 53,470 units from Germany, 24,041 units from Japan, 14,803 units from the U.S., and 4,211 units from the U.K. Japanese automakers are exporting the Toyota Camry, Venza and other models that are produced in the U.S. to Korea under the FTA concluded between Korea and the U.S.

---

Slight decrease in U.S. sales in 2013 with market share falling from 8.7% to 8.1%

 Hyundai-Kia Group's sales in the U.S. nearly doubled from 675,000 units in 2008 (with a market share of 5.1%) to 1.26 million units in 2012 (8.7% share). However, the Group's sales decreased by 4,644 units in 2013 with the share falling from 8.7% to 8.1%, while the industry volume in the U.S. increased by a million units during the year. The number of U.S.-made vehicles increased by 26,000 units but imports from Korea decreased by more than 30,000 units because of the restricted supply due to strikes. Hyundai's Santa Fe is produced at Kia's Georgia plant in the U.S. (106,000 units produced in 2013). As a result, imported vehicles account for more than 50% of Kia's sales.
 According to Automotive News dated November 11, 2013, the Hyundai-Kia Group gained momentum during the past few years that were characterized by several incidents. Consumers grew more price-oriented during those years due to financial crisis. GM and Chrysler filed for bankruptcy and Japanese automakers faced severe supply shortages after the East Japan Great Earthquake. The Automotive News notes that Hyundai-Kia Group's sales decline in 2013 was caused in part by the recovery among competitors in terms of their product appeal and production.
 To activate sales in the U.S., Hyundai-Kia are increasing their incentives from around USD 1,000 per vehicle in 2011-2012 to USD 1,377 in 2013 and to USD 1,836 in January-March 2014 (still lower than the industry's average of USD 2,722).

U.S.-made vehicles and imported vehicles in Hyundai-Kia's U.S. sales

		2010	2011	2012	2013	Jan.-Jul. 2013	Jan.-Jul. 2014
Hyundai	US-made	273,303	486,713	503,655	540,404	320,118	324,294
	Imports	264,925	158,978	199,352	180,379	106,897	107,151
	Total	538,228	645,691	703,007	720,783	427,015	431,445
Kia	US-made	108,202	130,235	271,996	261,542	160,173	157,071
	Imports	248,066	355,257	285,603	273,637	166,182	192,651
	Total	356,268	485,492	557,599	535,179	326,355	349,722
Hyundai-Kia	US-made	381,505	616,948	775,651	801,946	480,291	481,365
	Imports	512,991	514,235	484,955	454,016	273,079	299,802
	Total	894,496	1,131,183	1,260,606	1,255,962	753,370	781,167
	Market share	7.7%	8.9%	8.7%	8.1%	8.2%	8.1%
Light Vehicles in the US		11,589,844	12,779,007	14,493,092	15,582,136	9,148,292	9,604,694

Source: Automotive News
(Note) Hyundai has set its U.S. sales goal for 2014 at 745,000 units (with a market share of 4.7% assuming that 15.90 million vehicles are sold in the U.S.). Hyundai aspires to sell 800,000 units for 5% market share when the U.S. market recovers to 16 million units in a few years. The company is after a slow but steady increase in sales.

---

Shipment volume (wholesale basis)

 Hyundai successively started production at its plants outside Korea. Its shipment volume (wholesale volume) increased by 2.934 million units (70%) in four years from 4.20 million units in 2008 to 7.13 million units in 2012. The company's shipment volume increased by 429,000 units to 7.56 million units in 2013.
 Hyundai's production in Korea virtually remained unchanged at around 3.5 million units from 2011 to 2014 (planned) along with export volume of about 2.3 million units. Hyundai's production increase relies solely on operations at new plants overseas as the company has no plans to increase existing capacities in Korea in the near future.
 The ratio of overseas production to global sales in January-June 2014 was 61.6% for Hyundai and 43.3% for Kia. Between the two, Kia is more vulnerable to won's appreciation, labor disputes and other adverse conditions as it has a higher ratio of domestic production.

Hyundai-Kia Group's shipment volume (wholesale basis)

(1,000 units)

		2010	2011	2012	2013	2014 Plan	2013 1H	2014 1H
Hyundai	Korea Plant domestic export	1,731 658 1,073	1,885 682 1,202	1,911 667 1,244	1,820 641 1,179	1,872 682 1,190	922 326 596	972 346 627
	Overseas Plants	1,881	2,174	2,499	2,912	3,028	1,469	1,523
	Total sales	3,612	4,059	4,410	4,732	4,900	2,391	2,496
Kia	Korea Plants domestic export	1,400 483 917	1,581 492 1,089	1,589 481 1,108	1,598 458 1,140	1,660 480 1,180	818 226 592	877 219 658
	Overseas Plants	730	957	1,131	1,229	1,300	627	670
	Total sales	2,130	2,538	2,720	2,827	2,960	1,445	1,547
Hyundai-Kia Group	Korea Plant domestic export	3,131 1,141 1,990	3,466 1,174 2,291	3,500 1,148 2,352	3,418 1,099 2,319	3,532 1,162 2,370	1,740 552 1,188	1,849 565 1,285
	Overseas Plants	2,611	3,131	3,630	4,141	4,328	2,096	2,193
	Total	5,742	6,597	7,130	7,559	7,860	3,836	4,043
	year-on-year	1,075	855	533	429	301		207

Source: Consolidated results from both companies, Hyundai Motor Investor Presentation June 2014

Shipment volume from  plants outside Korea

(1,000 units)

		2010	2011	2012	2013	2014 Plan	2013 1H	2014 1H
Hyundai	the US China India Czech	300 703 603 200	338 740 616 251	361 856 641 303	399 1,031 633 304	390 1,080 600 300	207 511 332 155	195 553 296 160
	Turkey Russia Brazil CHMC (Note)	75 0	91 138	86 225 27	104 229 167 45	200 228 175 55	46 113 78 27	97 117 88 18
	Total	1,881	2,174	2,499	2,912	3,028	1,469	1,523
Kia	the US China Slovakia	167 333 230	272 433 252	358 481 292	370 547 313	360 630 310	192 276 159	186 311 173
	Total	730	957	1,131	1,229	1,300	627	670

(Note) Sichuan Hyundai Motor Company (CHMC) is a joint-venture  formed by Hyundai and Sichuan Nanjun Automobile Group, a local manufacturer of commercial vehicles. CHMC is building a new plant to start production in mid-2014. Unit sales in 2013 and January-June 2014 are those of Sichuan Nanjun's vehicles transferred to CHMC.

---

Building Chongqing plant in China and new plant in Mexico

 Hyundai-Kia Group's global production capacity is estimated to be approximately 8 million vehicles at the end of 2014. Hyundai had shelved new plant constructions during the past years. In March 2014, the company announced it would build a fourth plant in Chongqing, China, and start production there in 2016. Hyundai's production capacity in China is 1.2 million units including CHMC's commercial vehicle production capacity. The total capacity will be increased to 1.51 million units in 2016 including 300,000 units at the new Chongqing plant and additional capacity at CHMC plants. The Group will have a total production capacity of 2.25 million units in China including 740,000 units by Kia.
 While facing tough competitions in Korea and the U.S., Hyundai is struggling to become the third largest automaker in China after VW and GM.
 In August 2014, Kia announced it would build a new plant in Mexico with an annual capacity of 300,000 vehicles. The new plant is expected to increase Kia's supply to the U.S. where it is losing shares due to supply shortages and Latin America. The plant is also expected to mitigate the impact of won's appreciation.

---

Sales Forecast by LMC Automotive: Hyundai Group sales to be 7.47 million units in 2017

(LMC Automotive, Quarter 2, 2014)

 LMC Automotive forecasts that Hyundai Group's light vehicle sales in major 53 countries will be 7.47 million units in 2017, up by 14.8% from 2013.
 For sales volume by country, the largest market in 2017 will be China at 1,974,921 units, up by 21.4% from 2013. The second will be USA at 1,421,854 units, up by 13.2%. The third will be Korea at 1,110,071 units, up by marginal 3.2% or 34,593 units.
 The fourth will be India at 464,709 units, up by 22.3% from 2013. LMC comments that the continued expansion in China and India would be the biggest driver behind the Hyundai Group's improving performance in Asia-pacific region, the Hyundai Group's biggest global base.

Hyundai Group Light Vehicle Sales Forecast by country (53 countries in total)

	GLOBAL MAKE	2011	2012	2013	2014	2015	2016	2017
Hyundai Group	Hyundai	3,601,589	3,838,538	4,086,752	4,198,825	4,378,514	4,457,668	4,626,135
	Kia	2,192,425	2,393,740	2,418,236	2,432,741	2,499,553	2,643,854	2,838,514
Hyundai Group total		5,794,014	6,232,278	6,504,988	6,631,566	6,878,067	7,101,522	7,464,649
China	Hyundai	770,705	890,224	1,047,763	1,095,376	1,162,285	1,171,249	1,221,550
	Kia	458,753	513,882	578,720	599,841	631,183	668,969	753,371
China sub-total		1,229,458	1,404,106	1,626,483	1,695,217	1,793,468	1,840,218	1,974,921
USA	Hyundai	645,691	703,007	720,783	723,582	787,480	781,051	784,557
	Kia	485,436	557,599	535,179	596,237	624,084	631,470	637,297
USA sub-total		1,131,127	1,260,606	1,255,962	1,319,819	1,411,564	1,412,521	1,421,854
Korea	Hyundai	659,662	645,846	619,019	685,885	704,648	681,193	696,522
	Kia	491,408	480,503	456,459	442,106	439,779	451,190	413,549
Korea sub-total		1,151,070	1,126,349	1,075,478	1,127,991	1,144,427	1,132,383	1,110,071
India	Hyundai	373,709	391,273	380,002	413,928	429,633	449,178	464,709
India sub-total		373,709	391,273	380,002	413,928	429,633	449,178	464,709
Russia	Hyundai	163,446	174,282	181,153	143,894	133,092	134,674	142,143
	Kia	152,870	187,330	198,021	156,476	130,098	135,590	139,335
Russia sub-total		316,316	361,612	379,174	300,370	263,190	270,264	281,478
Brazil	Hyundai	114,933	108,357	212,969	193,188	185,202	192,389	201,750
	Kia	77,020	41,160	29,132	25,833	27,043	30,621	32,766
Brazil sub-total		191,953	149,517	242,101	219,021	212,245	223,010	234,516
Canada	Hyundai	129,191	136,283	137,100	137,599	133,045	132,958	131,377
	Kia	65,123	77,800	72,449	71,816	74,703	75,366	75,298
Canada sub-total		194,314	214,083	209,549	209,415	207,748	208,324	206,675
UK	Hyundai	63,568	74,669	77,158	85,367	89,298	95,987	96,841
	Kia	53,614	66,633	72,098	76,254	76,291	72,955	76,988
UK sub-total		117,182	141,302	149,256	161,621	165,589	168,942	173,829
Germany	Hyundai	87,834	101,662	101,702	98,581	100,439	101,735	104,696
	Kia	42,029	54,751	55,606	52,879	55,116	55,174	60,054
Germany sub-total		129,863	156,413	157,308	151,460	155,555	156,909	164,750
Australia	Hyundai	87,137	91,600	97,006	95,919	96,673	94,943	95,599
	Kia	25,128	30,758	29,571	30,121	31,435	32,222	32,342
Australia sub-total		112,265	122,358	126,577	126,040	128,108	127,165	127,941
Chile	Hyundai	35,062	35,123	34,967	37,577	41,603	44,567	47,457
	Kia	27,871	28,916	31,899	31,328	33,353	35,297	37,169
Chile sub-total		62,933	64,039	66,866	68,905	74,956	79,864	84,626
Italy	Hyundai	43,498	43,482	38,249	42,340	48,912	56,010	59,914
	Kia	19,461	27,067	29,843	26,016	27,411	31,836	39,580
Italy sub-total		62,959	70,549	68,092	68,356	76,323	87,846	99,494
Spain	Hyundai	28,110	29,405	30,071	36,671	40,845	46,109	51,796
	Kia	19,666	18,424	22,017	25,070	29,192	31,368	36,361
Spain sub-total		47,776	47,829	52,088	61,741	70,037	77,477	88,157
France	Hyundai	20,307	28,915	25,979	23,120	27,127	28,832	30,210
	Kia	28,017	33,261	33,811	31,627	34,086	35,369	41,536
France sub-total		48,324	62,176	59,790	54,747	61,213	64,201	71,746
South Africa	Hyundai	0	0	11,631	38,851	37,984	46,989	47,347
	Kia	0	0	4,506	13,151	10,398	9,404	7,743
South Africa sub-total		0	0	16,137	52,002	48,382	56,393	55,090
Turkey	Hyundai	49,130	46,135	49,620	40,286	44,072	47,748	48,443
	Kia	10,493	12,715	13,647	10,002	9,902	10,517	11,878
Turkey sub-total		59,623	58,850	63,267	50,288	53,974	58,265	60,321
Colombia	Hyundai	29,021	26,905	25,092	27,226	30,631	34,070	36,108
	Kia	27,245	27,016	28,267	22,218	26,865	28,420	31,072
Colombia sub-total		56,266	53,921	53,359	49,444	57,496	62,490	67,180
Peru	Hyundai	17,647	22,900	24,545	24,808	25,006	26,315	27,632
	Kia	14,152	17,899	20,101	21,970	22,479	23,373	24,552
Peru sub-total		31,799	40,799	44,646	46,778	47,485	49,688	52,184
Netherlands	Hyundai	23,803	21,789	11,217	17,190	20,600	22,485	23,493
	Kia	23,275	27,360	24,791	23,837	26,490	30,662	39,837
Netherlands sub-total		47,078	49,149	36,008	41,027	47,090	53,147	63,330
Poland	Hyundai	14,286	15,589	17,219	18,103	17,473	19,417	20,335
	Kia	12,869	15,315	17,397	14,982	15,559	18,520	20,532
Poland sub-total		27,155	30,904	34,616	33,085	33,032	37,937	40,867
Belgium	Hyundai	14,957	14,894	18,759	16,712	15,501	16,038	15,982
	Kia	12,397	11,890	13,272	13,218	12,821	12,935	14,391
Belgium sub-total		27,354	26,784	32,031	29,930	28,322	28,973	30,373
Austria	Hyundai	18,197	19,365	21,160	18,310	18,064	18,417	18,497
	Kia	11,156	12,709	9,496	10,688	11,862	11,925	12,589
Austria sub-total		29,353	32,074	30,656	28,998	29,926	30,342	31,086
Kazakhstan	Hyundai	3,312	6,918	12,406	16,288	17,178	19,378	22,855
	Kia	1,785	5,492	11,891	12,691	12,821	13,563	14,446
Kazakhstan sub-total		5,097	12,410	24,297	28,979	29,999	32,941	37,301
Philippines	Hyundai	20,106	21,992	21,743	21,175	21,661	22,468	22,951
	Kia	4,782	7,527	5,947	7,412	7,810	8,123	8,299
Philippines sub-total		24,888	29,519	27,690	28,587	29,471	30,591	31,250
Sweden	Hyundai	12,687	12,000	10,520	10,735	10,750	10,686	11,506
	Kia	14,776	17,305	14,802	17,421	18,614	18,079	19,559
Sweden sub-total		27,463	29,305	25,322	28,156	29,364	28,765	31,065
Denmark	Hyundai	9,706	9,049	8,239	10,304	9,428	8,988	9,122
	Kia	6,269	11,026	11,006	12,088	10,929	11,297	12,789
Denmark sub-total		15,975	20,075	19,245	22,392	20,357	20,285	21,911
Malaysia	Hyundai	10,663	10,871	11,600	11,647	13,232	15,228	16,717
	Kia	8,509	11,474	10,400	9,587	9,869	10,247	10,816
Malaysia sub-total		19,172	22,345	22,000	21,234	23,101	25,475	27,533
Ecuador	Hyundai	9,010	6,988	10,461	8,452	10,712	10,787	11,755
	Kia	9,786	8,441	11,823	12,476	16,298	16,572	17,180
Ecuador sub-total		18,796	15,429	22,284	20,928	27,010	27,359	28,935
Czech Republic	Hyundai	12,199	15,220	16,296	12,013	10,275	12,705	12,857
	Kia	8,573	8,566	6,331	8,223	9,793	10,785	12,408
Czech Republic sub-total		20,772	23,786	22,627	20,236	20,068	23,490	25,265
Taiwan	Hyundai	13,934	16,802	14,498	16,404	16,846	17,389	17,955
	Kia	416	425	440	442	445	438	410
Taiwan sub-total		14,350	17,227	14,938	16,846	17,291	17,827	18,365
Switzerland	Hyundai	9,989	11,513	10,284	9,543	8,733	8,927	9,346
	Kia	4,002	4,697	3,990	4,796	5,771	5,407	5,402
Switzerland sub-total		13,991	16,210	14,274	14,339	14,504	14,334	14,748
Ukraine	Hyundai	22,036	23,116	18,125	8,258	8,433	10,990	14,491
	Kia	9,305	16,108	13,224	6,058	7,233	8,183	10,111
Ukraine sub-total		31,341	39,224	31,349	14,316	15,666	19,173	24,602
Indonesia	Hyundai	4,785	5,939	3,816	2,693	2,189	2,455	2,837
	Kia	9,081	13,809	12,262	11,139	11,293	12,373	13,525
Indonesia sub-total		13,866	19,748	16,078	13,832	13,482	14,828	16,362
Mexico	Hyundai	20,572	23,939	19,598	11,435	11,186	11,439	11,895
Mexico sub-total		20,572	23,939	19,598	11,435	11,186	11,439	11,895
Ireland	Hyundai	4,078	5,385	6,269	7,327	6,353	7,170	7,872
	Kia	2,718	3,169	3,432	4,013	4,461	4,894	5,743
Ireland sub-total		6,796	8,554	9,701	11,340	10,814	12,064	13,615
Slovakia	Hyundai	3,568	4,682	5,340	3,594	3,022	3,752	3,757
	Kia	4,919	5,396	4,976	6,573	6,832	7,449	8,796
Slovakia sub-total		8,487	10,078	10,316	10,167	9,854	11,201	12,553
Norway	Hyundai	7,162	6,490	4,327	4,504	5,377	5,693	6,079
	Kia	2,778	4,670	5,116	4,452	4,965	5,094	5,738
Norway sub-total		9,940	11,160	9,443	8,956	10,342	10,787	11,817
Finland	Hyundai	4,488	4,377	3,364	2,563	3,003	3,400	3,831
	Kia	6,120	6,351	6,231	5,621	6,251	6,836	7,507
Finland sub-total		10,608	10,728	9,595	8,184	9,254	10,236	11,338
Romania	Hyundai	3,379	3,273	2,518	4,712	5,565	7,298	7,773
	Kia	1,110	1,014	914	1,272	1,369	1,634	2,176
Romania sub-total		4,489	4,287	3,432	5,984	6,934	8,932	9,949
Greece	Hyundai	4,830	2,604	3,958	3,619	3,880	4,223	5,099
	Kia	2,348	1,531	986	1,360	1,668	1,932	2,709
Greece sub-total		7,178	4,135	4,944	4,979	5,548	6,155	7,808
Slovenia	Hyundai	3,021	2,286	2,090	2,507	2,963	3,525	3,517
	Kia	2,274	2,718	3,209	1,480	1,444	2,024	2,331
Slovenia sub-total		5,295	5,004	5,299	3,987	4,407	5,549	5,848
Thailand	Hyundai	4,513	4,761	4,093	3,341	3,418	3,517	3,719
	Kia	905	1,519	897	611	820	955	1,031
Thailand sub-total		5,418	6,280	4,990	3,952	4,238	4,472	4,750
Portugal	Hyundai	2,988	1,178	883	1,415	1,636	1,821	2,070
	Kia	2,768	1,892	1,683	2,530	2,862	3,268	3,883
Portugal sub-total		5,756	3,070	2,566	3,945	4,498	5,089	5,953
Uruguay	Hyundai	1,630	2,568	2,877	2,973	2,995	3,090	3,165
	Kia	382	627	698	766	763	874	892
Uruguay sub-total		2,012	3,195	3,575	3,739	3,758	3,964	4,057
Hungary	Hyundai	1,323	1,228	1,077	1,286	1,458	1,930	2,093
	Kia	1,212	1,801	2,023	2,025	2,113	2,794	3,573
Hungary sub-total		2,535	3,029	3,100	3,311	3,571	4,724	5,666
Argentina	Hyundai	5,361	3,596	4,664	1,805	2,028	2,127	2,253
	Kia	2,703	1,595	2,110	870	932	963	1,001
Argentina sub-total		8,064	5,191	6,774	2,675	2,960	3,090	3,254
Luxembourg	Hyundai	1,764	2,122	2,533	2,331	2,455	2,443	2,451
	Kia	271	267	279	237	295	306	316
Luxembourg sub-total		2,035	2,389	2,812	2,568	2,750	2,749	2,767
Estonia	Hyundai	730	972	814	1,366	1,679	2,138	2,183
	Kia	476	1,001	1,106	887	940	1,205	1,405
Estonia sub-total		1,206	1,973	1,920	2,253	2,619	3,343	3,588
Bulgaria	Hyundai	0	0	0	763	985	1,123	1,120
	Kia	643	1,219	1,473	766	710	986	1,167
Bulgaria sub-total		643	1,219	1,473	1,529	1,695	2,109	2,287
Latvia	Hyundai	410	527	616	621	793	1,118	1,251
	Kia	199	296	413	483	542	699	914
Latvia sub-total		609	823	1,029	1,104	1,335	1,817	2,165
Lithuania	Hyundai	393	529	483	534	595	762	787
	Kia	435	541	613	466	477	671	814
Lithuania sub-total		828	1,070	1,096	1,000	1,072	1,433	1,601
Venezuela	Hyundai	7,842	4,308	75	2	0	0	0
	Kia	5,577	6,017	3,679	326	1,083	1,610	2,624
Venezuela sub-total		13,419	10,325	3,754	328	1,083	1,610	2,624
Japan	Hyundai	76	42	15	99	73	62	68
Japan sub-total		76	42	15	99	73	62	68
Iran	Hyundai	5,140	1,558	6	3	0	8,682	35,802
	Kia	19,320	4,258	0	0	0	51,410	122,709
Iran sub-total		24,460	5,816	6	3	0	60,092	158,511

Source: LMC Automotive "Global Automotive Sales Forecast (Quarter 2 2014)"
(Notes) 1.	Data indicates figures of only small-size vehicles, including passenger cars and light commercial vehicles with gross vehicle weight of under 6 tons.
2.	All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3.	For more information or inquiries of forecast data, please contact LMC Automotive.