Hyundai drives faster and faster in China
Hyundai Motor, South Korea's biggest carmaker, is set to expand investment in China to accelerate its penetration into the world's fastest- growing market, as the domestic market has approached saturation.
Hyundai is one of the world's fastest-growing carmakers, having sharply increased its market share in the US and Europe in recent years. To meet the growing demand from China, it is planning to build a second plant in Beijing as part of a $1.1bn investment plan designed to produce 600,000 units in China by 2007.
The country has become increasingly important for Hyundai, as the carmaker aims to join the ranks of the world's top five in the industry by 2010.
"The Chinese market is growing so fast. It will become our main engine of growth," says Jake Jang of Hyundai.
Several other carmakers have also rushed to China to grab a piece of the world's fourth largest market, as Chinese demand for new cars is likely to remain robust for the next three to four years.
Hyundai entered the Chinese market relatively late but has grown rapidly, partly as a result of the middle class's fondness for the Sonata mid-sized saloon. It has sold 53,000 cars in China since it began its Chinese operations in December 2002, increasing its market share to 3 per cent. Hyundai intends to increase its Chinese sales to 150,000 this year.
"Despite being a late comer, Hyundai's penetration into the Chinese market has been very successful, thanks to its aggressive campaign," says Kim Hak-ju, an analyst at Samsung Securities, noting that Japan's Honda took three years to hit a sales level of 50,000.
He attributes Hyundai's progress in China to its advanced technology, which allows it to set up production facilities quickly. Its Sonatas and Elantra compact cars are sold at a 10-15 per cent discount but it enjoys a high operating margin, thanks to the lower costs of parts supplied from its 11 South Korean partners operating in China, including Hyundai Mobis.
Hyundai's brand also has a relatively good image in China, whereas in the west it is still battling to overcome the perception that it is a maker of cheap, small vehicles.
Analysts said Hyundai's strategy of introducing models at relatively low prices had helped its cars gain popularity in China, aided by Hyundai's joint venture with Beijing Automotive Industry which produces the Sonata Elantra models. Hyundai plans to produce six models in China by 2007, including the Santa Fe sports utility vehicle.
Kia Motors, a Hyundai affiliate, is also increasing its investment in China. It plans to invest $600m by 2007 to build a second plant that could make 400,000 cars a year. Hyundai and Kia together would have the capacity to make 1m vehicles annually.
However, Hyundai still lags far behind its bigger rivals such as Volkswagen, which is the dominant supplier in China with a 45 per cent market share, and Toyota, which has a 9 per cent share.
Analysts caution that Hyundai's profitability may fall this year, as a likely price war intensifies.
"Its operating margin is expected to fall in 2004 as marketing costs increase," says Mr Kim.
"The real game hasn't started yet. We have to wait and see how Hyundai survives the war."
现代汽车在华越开越快
由于国内市场已近饱和，韩国最大的汽车制造商现代汽车(Hyundai Motor)计划扩大在华投资，以便在这个全球增长最快的市场上加速渗透。
现代汽车是全球增长最快的汽车制造商之一，近年来，它在美国和欧洲的市场份额已急剧扩大。为满足中国日益增长的需求，现代汽车打算在北京建设第二个工厂。这是该公司11亿美元投资计划的一部分，这一计划的目标是，到2007年在中国生产60万辆汽车。
现代汽车的目标是，在2010年前跻身世界汽车业前五名，因此中国对它而言已越来越重要。
"中国市场增长如此之快，将成为我们的主要增长动力，"现代汽车的Jake Jang说。
在未来三到四年里，中国人对新汽车的需求很可能仍保持强劲，因此，其它一些汽车制造商也纷纷抢滩中国，以求在这个全球第四大市场中夺得一席之地。
现代汽车进入中国市场相对较晚，但增长迅速，部分原因在于中国中产阶级对该公司索纳塔(Sonata)中型轿车情有独钟。自2002年12月在华业务开始以来，它已在中国卖出5.3万辆汽车，市场份额增加到了3%。现代打算今年把在华销量提高到15万辆。
"现代虽然是个迟到者，但它对中国市场的渗透非常成功，这要归功于它积极的销售推广活动，"三星证券(Samsung Securities)分析师金学株(Kim Hak-ju)说。他指出，日本的本田汽车(Honda)花了三年时间才达到5万辆的销售水平。
金学株把现代在中国的进展归因于公司的先进技术，这些技术让现代得以在中国迅速组建生产设施。现代的索纳塔和伊兰特(Elantra)紧凑型轿车以10%到15%的折扣价销售，但公司仍有很高的运营利润，这主要得益于公司较低成本的部件供应，它们来自11家在中国经营的韩国合作伙伴，其中就包括现代摩比斯(Hyundai Mobis)。
在中国，现代的品牌形象相对较好，而在西方国家，人们认为，现代总是生产廉价的小型汽车，迄今为止，公司仍在为改变这种形象而艰苦努力。
分析师表示，现代的策略是引进价格相对较低的车型，这让它在中国市场得以流行。这种策略得到了它与北京汽车工业公司合资企业的帮助，该合资企业生产索纳塔伊兰特型车。现代计划到2007年在中国生产六款车型，其中包括Santa Fe多功能赛车。
现代集团的成员起亚汽车(Kia Motors)也在增加对华投资。起亚计划到2007年在中国投资6亿美元，建立第二个生产工厂，该工厂的年产能将达40万辆。现代和起亚的年产能合计将达到100万辆。
不过，现代目前仍远远落后于它最大的竞争对手，比如大众(Volkswagen)和丰田(Toyota)。大众是中国市场的主导供应商，拥有45%的市场份额，丰田拥有9%。
分析师警告说，由于爆发价格战的可能性大大增加，现代今年的盈利能力可能下滑。
"预计随着营销成本增加，公司2004年的运营利润将会下降，"金先生说。
"真正的较量还没开始呢，现代将如何在市场大战中存活下来，我们还得走着瞧。"
