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| Hyundai and Kia shares hit by sales forecast | Hyundai and Kia shares hit by sales forecast |
| (about 1 hour later) | |
| Shares of Hyundai and affiliate Kia Motors have dipped more than 5% after the carmakers issued their weakest growth forecast in nearly a decade. | |
| Their combined sales are expected to grow by 4% to 7.86 million vehicles in 2014. | Their combined sales are expected to grow by 4% to 7.86 million vehicles in 2014. |
| The outlook is lower than the 6.2% growth posted by the two firms in 2013. | The outlook is lower than the 6.2% growth posted by the two firms in 2013. |
| The forecast comes amid increased competition from Japanese rivals who have benefited from a sharp decline in the yen's value in recent months. | The forecast comes amid increased competition from Japanese rivals who have benefited from a sharp decline in the yen's value in recent months. |
| The Japanese currency fell nearly 20% against the US dollar in 2013. A weaker yen makes Japanese goods more affordable for foreign buyers. | The Japanese currency fell nearly 20% against the US dollar in 2013. A weaker yen makes Japanese goods more affordable for foreign buyers. |
| At the same time, the South Korean won has strengthened in recently - making South Korean cars more expensive for foreign buyers and negating some of the price advantage the firms had enjoyed in recent years. | At the same time, the South Korean won has strengthened in recently - making South Korean cars more expensive for foreign buyers and negating some of the price advantage the firms had enjoyed in recent years. |
| The won has risen nearly 10% against the US dollar since June last year. | The won has risen nearly 10% against the US dollar since June last year. |
| To add to Hyundai and Kia's woes, they have also been facing increased competition in the US from resurgent domestic carmakers Ford and General Motors. | To add to Hyundai and Kia's woes, they have also been facing increased competition in the US from resurgent domestic carmakers Ford and General Motors. |
| That has seen their growth in the US - one of their biggest markets - slow. | That has seen their growth in the US - one of their biggest markets - slow. |
| Hyundai chairman Chung Mong-koo said: "Competition among companies is intensifying, as the global economy has entered an era of low growth". | Hyundai chairman Chung Mong-koo said: "Competition among companies is intensifying, as the global economy has entered an era of low growth". |
| Hyundai has also been hurt in recent months by a series of strikes by staff over pay, which resulted in fewer vehicles being produced at its South Korean factories. | Hyundai has also been hurt in recent months by a series of strikes by staff over pay, which resulted in fewer vehicles being produced at its South Korean factories. |