Business Drive

Hyundai group joins ranks of global top automakers

Rapid climb from 11th in 1999 global rankings to 5th place in 2007:

With global sales of 3,961,629 units in 2007 the Hyundai Automotive Group has emerged as the world’s fifth largest automaker moving up from sixth place in 2006, according to Automotive News’ 2008 Global Market Data Book published recently.

While quantitative growth has been an important objective in the past for the Group, the company’s efforts are now focused on qualitative growth in terms of continuous improvement in corporate social responsibility, profitability, technological innovation and brand power.

Hyundai has the momentum to keep on growing. The Group has seen remarkable growth in the four decades since Hyundai Motor Co. was founded. It ranked as the world’s eleventh largest automaker in 1999, the year Hyundai-Kia Chairman Chung Mong-Koo took over the helm as the CEO.

Since then, under Chairman Chung’s leadership, it has moved steadily up the rankings ladder, accelerating its push to globalize operations by building new manufacturing plants in the United States, China, India, Slovakia, Czech and Russia.

Counting the export sales of 185,114 complete knock-down kits which are assembled by overseas partners, the Group’s 2007 global sales reached 4,146,743 units.

Hyundai Motor posted sales of US$74.9 billion in 2007 on a consolidated-basis and US$32.8 billion on a non-consolidated basis (using the average currency exchange of 929 won per US dollar).

Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms.

British International Motor Show goes green

More than 600 cars from 60 manufacturers will go on show at the British International Motor Show which will feature lavish launches, world premieres, concept vehicles, supercars and an air of glamour and confidence, but the industry as a whole is suffering of a period of downturn.

Rising inflating and steadily increasing fuel costs have lead to a 7.9 per cent fall in car sales in Europe this June, with Toyota and General Motors reporting double-digit monthly declines, according to the European Automobile Manufacturers Association.

Geoff Cousins, Managing Director of Jaguar UK, says that the British motoring industry is facing a difficult period in which consumers are simply buying fewer cars.

In spite of this, the 2008 year’s British International Motor Show highlights the initiatives the world’s major manufacturers are undertaking to meet the threats the industry faces. Specifically, emphasising pleasure in motoring and environmental concern. This year’s show features one of the largest collections of zero emissions vehicles ever assembled in the UK.

Paul Everitt, Chief Executive of the Society of Motor Manufacturers and Traders described the show as “an important showcase for efforts the industry is making to help reduce CO2 emissions and meet the challenges of climate change.” Most of the zero-emissions vehicles on display are on sale now, including one of the world’s most desirable cars and the poster child for eco-chic, the Tesla Roadster.

Other green cars on display include the revamped 2008 G-Wiz i, as well as the new Nice MyCar, a G-Wiz rival that goes on sale this Autumn with a price tag of around œ9,000. Also on display is a new all-electric offering from Smart called the ‘eg’ which is currently being trialled in the UK with a view to going into production in 2010.

Other new cars and concepts from Bentley, Land Rover, Jaguar, Honda, Nissan and more feature at the show, alongside live acts including Blondie, UB40 and Status Quo.

The British International Motor Show commenced on July 23 and will run till August 3.

India’s Maruti shares fall on outlook concerns

Shares in Maruti Suzuki India Ltd ,the country’s top car maker, fell nearly 10 percent on Tuesday on concerns its margins would remain under pressure because of rising costs and greater competition.

New Delhi-based Maruti on Monday reported a smaller-than expected 7 percent fall in quarterly profit to 4.66 billion rupees ($109 million), but operating margin, a key gauge of profitability, fell to 10 percent from 14.6 percent a year ago.

“Margins are a concern,” said Huzaifa Suratwala at IL&FS Investsmart, which is reviewing its ‘buy’ rating on the stock.

“The outlook is not good, because competition will make it hard to raise prices, so margins are likely to stay at this level for the rest of the year.”

Maruti shares ended down 9.3 percent at 587.95 rupees, their sharpest fall since May 2006, in a Mumbai market that rose 1.8 percent.

Reuters

Crowds throng at Motor show

The Motor Show 2008 organised by the Ceylinco Exhibitions and SLARDAR concluded on last Sunday at BMICH. There was a special area allocated for racing drivers and riders to display their achievements, vehicles, trophies and photos obtained over the years.

Apart from the racing drivers and riders section various importers of vehicles, parts, accessories, merchants displayed their products at the motor show. Here are some snap shots captured by our photographer Saliya Rupasinghe at the Motor Show 2008.