South Korea's top automaker, Hyundai Motor Co, aims to increase car sales by a fifth this year to 3.11 million vehicles, but the ambitious growth target in fiercely competitive markets failed to impress investors, who marked Hyundai shares down more than 4 percent.
Increased spending by South Koreans is expected to bolster future profits at Hyundai, which controls about half the high-margin domestic market, but the credit crunch will squeeze demand in the United States.
Hyundai last month denied media reports it was considering cutting production at its US plant.
"Hyundai's 2008 sales target looks very aggressive," said Kim Byung-kuk, an analyst at Daishin Securities. "Most brokers think it will be difficult for Hyundai to sell over 3 million units this year."
An economist with the US National Automobile Dealers Association has said US vehicle sales could drop to 15.5 million in 2008 from last year's 16 million.
Toyota Motor Corp said last month it expected to increase sales by 5 percent this year to a record 9.85 million vehicles, cementing its position as world leader ahead of General Motors Corp.
Hyundai and affiliate Kia Motors Corp, together the world's No 6 carmaker, increased their US sales by 2.5 percent in January-November to 701,927 units, giving them a 4.8 percent market share.
Hyundai also said in a filing with the Korea Exchange that it set its 2008 revenue target at 46 trillion won ($49.2 billion), up 12 percent from last year.
Hyundai spokesman Jake Jang said the 2008 targets would be achieved through increased output at overseas plants and the introduction of new models.
Source: China Daily/Agencies
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