Hyundai Motor Group chairman Chung Mong-koo left for Europe on Tuesday to oversee the Russian, Slovakian and Czech markets hit by the Brexit vote, the company’s official said.

The chairman plans to visit the automaker’s factories in the three nations to monitor sales and market conditions. 


“We should make a breakthrough starting from the European market, which is expected to see record-breaking sales this year, amid slow growth in the global auto market,” Chung said in the company’s statement.

“We will expand sales centering on sport utility vehicles and raise brand profiles through eco-friendly cars in the continent,” he added.

This year, SUVs drove the automaker’s sales in Europe, with Hyundai’s Tucson selling more than 80,000 units in the first half, a 47 percent growth on-year and Kia’s Sportage selling 77,000 units, a 39 percent rise during the same period.

The automaker also plans to enter the eco-friendly car market with full lineups of such cars -- hybrid, plug-in hybrid, electric and hydrogen fuel cell cars. This year, the firm plans to launch the Ionic, Niro and K5 plug-in-hybrid in the European market.

Hyundai views Europe as a fast rising market that recorded the highest growth in the global market last year. According to Hyundai Motor’s research center, auto sales in Europe rose 9.2 percent last year compared to the previous year, which is higher than the 8.2 percent growth in China and the 8.5 percent in India.

Last year, Hyundai and Kia sold around 490,000 units in Europe, a 12 percent growth on-year.

However, this year’s market condition is not bright because of the fallout from Brexit, although the market grew 9.1 percent in the first half on-year.

On Wednesday, Chung plans to encourage employees in Russia not to give up on the Russian market because of new opportunities in the future, the company’s official said.

The Russian auto market has seen a decline for years due to a prolonged economic slowdown. Its peak sales of 2.9 million units in 2012 halved to 1.6 million units last year. Some global automakers closed their factories and pulled their businesses out of the nation due to declining sales and profitability.

However, Hyundai and Kia have expanded market share in the nation, with the aim of taking leadership in the market by raising their brand profile and strengthening product lineups, the company said.

Hyundai and Kia sold 320,000 units in Russia, a 13.5 percent fall year-on-year, but its market share increased from 15 percent to 20 percent as Russia’s entire market fell by 35.7 percent.

By Shin Ji-hye (shinjh@heraldcorp.com)