Hyundai 2001 Annual Report Download - page 23

Hyundai’s domestic sales grew by 13.4
percent, an achievement that is all the more
impressive in light of the 1.4 percent growth in
domestic demand in 2001. Our sales of
734,313 units represent a market share of 48.7
percent, an improvement of 3.5 points over the
prior year. Expectations of an economic
rebound and income polarization increased
demand for passenger cars especially mid-size
and luxury sedans. However, minivan sales fell
sharply owing to the increase in LPG fuel prices
but despite the strong demand for SUVs,
recreational vehicle sales dropped by 6 percent.
Sales of small commercial vehicles rose by 5.9
percent over the prior year.
The domestic market is set to grow further
in 2002 owing to the confluence of numerous
factors that will stimulate demand. These
include robust economic growth, the
government’s discounting of the special excise
tax to stimulate consumption, the presidential
election which has traditionally fueled spending
plus the hosting of the World Cup and Busan
Asian Games.
However, the auto industry is undergoing a
drastic restructuring both in Korea and
internationally. Global leaders from Japan,
Europe and the United States are set to expand
their Korean sales networks and will roll out
aggressive marketing tactics to secure a bigger
share of the market. Hyundai has long
anticipated this challenge and is prepared to
respond with effective counter-measures.
First, as an official sponsor of the 2002 FIFA
World Cup, Hyundai is uniquely well-
positioned to further elevate its standing as a
global brand. We are planning a wide range of
World Cup-related sports marketing initiatives
in Korea and Japan the host countries as well
M ARKETING ,
S ALES & S ERVICE
22
2001 Annual Report Hyundai Motor Company