Hyundai is recovering in China

#hashtags: #Hyundai #China #Tucson SUV #Tucson

Hyundai did not have a very optimistic year so far in China, but for the first time in seven months their sales are increasing. China is Hyundai’s largest market by volume, but this year was not a promising one for the company so far in terms of deliveries. Introducing the new Tucson SUV model helped the carmaker recover some of the lost ground and for the first time in seven months the sales are on a positive trend, with an 8,5 percent increase for October. In addition, in order to boost deliveries, Hyundai proposed a very competitive price for the new Tucson. A significant help came also from the Chinese government after a cut of a purchase tax on small passenger vehicles starting from Oct. 1. Therefore, a recovery in demand correlated with marketing efforts has contributed to Hyundai’s biggest monthly global sales gain since December 2014. The first nine months of this year were challenging for Hyundai with an 11 percent descent in deliveries across its plants in China. None of the company’s models was able to breach into the top ten best-selling SUVs during the period. The demand in the country hit the slowest pace due to modest economic progress and the stock market precipitation drop from earlier this summer, which turned away potential consumers. Hyundai has big plans for China, wanting to increase the dealership count and, far more important as a significant future impact, building two more plants to expand local production by 56 percent through the second half of 2016. According to recent statements, other automakers are on a good pace in China as well. Nissan foresees it will sell one million passenger cars this year for the first time in this country and Honda expects to hit the 900,000 units target, driven by strong performance of Sports Utility Vehicles segment. Via Bloomberg