April 17, 2024

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[THE INVESTOR] Amid faltering profits in China, Hyundai Motor Group -- comprising Hyundai Motor and Kia Motors -- said it has set up a new specialized division to tackle the sales slump.

The new China Product Development division combines China product business department and Technology & Engineering Center in China under one umbrella to develop China-specific cars and enhance response to the market trends. The newly formed division will be in charge of all the product planning, R&D and design for the market. 

Hyundai Motor Vice President Jung Rak (second from left) at the Shanghai Motor Show in April.

Hyundai Motor Vice President Jung Rak, who led the new Kona compact SUV and Genesis EQ900 roll out, will head the new division.

Korea’s largest carmaker is counting on the latest reshuffle to revive its sales slump in the world’s largest auto market.

China sales of the group in July was down 37 percent on-year to 70,017 units, showing no immediate signs of recovery hit by ongoing geopolitical tension.

The carmaker said heightened Chinese consumer backlash over Seoul’s decision to deploy the US-led THAAD missile system caused the sales decline, with the fallout to persist in the second half of this year as well.

Earlier in June, Hyundai hired ex-VW China head designer Simon Loasby to lead its design team in China, to lure more Chinese consumers.

The auto giant is banking on new car launches in China in an attempt to offset some of its sales loss in the second half. Hyundai plans to unveil ix35 SUV and new subcompact sedan Reina, while Kia plans to roll out new Pegas compact sedan and K2 Cross SUV, as well as revamped K4 sedan.

By Ahn Sung-mi (sahn@heraldcorp.com)