Hyundai, Kia forecast slowest growth in more than a decade

After posting record sales of more than eight million units in 2014, Hyundai and Kia are bracing for a significant slowdown in sales growth amid increasing pressure from Japanese rivals.
The duo expect sales to increase by just 2.5 percent in 2015, compared to gains of approximately four percent in 2013 and 2014. If the forecast proves accurate, 2015 growth will be the worst in more than a decade.

The automakers have issued the warning in response to the weak yen, which is expected to give Japanese rivals a competitive edge through the rest of the year. Foreign brands have also continued to erode Hyundai-Kia’s domestic market share in home Korea.

Group chairman Chung Mong-koo suggests the companies will attempt to increase production, cut costs, improve technology sharing and increase research-and-development spending to help the brands compete in the global marketplace despite the currency shift, according to comments quoted by The Detroit News.

Japanese automakers, meanwhile, are expected to increase domestic production to take full advantage of the weak yen. Subaru appears to be one of the first to follow the likely trend, reportedly killing plans to move XV Crosstrek production from Japan to the US.