Subscribe to free Email Newsletter  
 
 
   

BIZCHINA / Center

Beijing Hyundai faces fraud claim
By Yu Qiao (China Daily)
Updated: 2006-08-09 08:56

Hua Xue, chief executive officer of cheshi.com.cn, a Beijing-based website conducting on-line car sales nationwide, said: "The launch prices of the Accent were higher than customers' expectations. It couldn't help but slash the prices in order to deal with competition from rivals, despite having made this promise."

The Accent competes in a segment where customers are very sensitive about prices, going head-to-head with models such as Volkswagen's Polo, the Chevrolet Lova and the Honda Fit.

Hua added that Beijing Hyundai also had to cut the prices in an effort to achieve its ambitious 2006 sales target.

The company announced at the beginning of this year that it aimed to sell 300,000 vehicles in 2006, up from last year's 230,000 units.

In the first seven months of 2006, Beijing Hyundai's sales grew 19 per cent year-on-year to 157,100 units, ranking fifth in China's passenger vehicle market.

It sold 13,400 Accents by the end of July, a figure that fell far short of Beijing Hyundai's expectations, according to analysts.

The company, which has facilities in Shunyi District, also produces the Elantra compact sedan, the Sonata NF mid-sized sedan and Tucson sport utility vehicles.

Jia Xinguang, from the China Association of Automobile Manufacturers, said: "The lawsuit will tarnish Beijing Hyundai's reputation. It is likely to have a negative impact on its sales for at least one year."

"This is a major lesson other automakers should learn," Jia said.

Established in 2002, Beijing Hyundai, plans to double its production capacity with the construction of a new factory capable of turning out 300,000 vehicles a year

It plans to boost annual sales to more than 600,000 vehicles by 2010.


Page: 12

(For more biz stories, please visit Industry Updates)

 
Comments (total China Daily Website - Connecting China Connecting the World

Sorry, the page you requested was not found.

Please check the URL for proper spelling and capitalization. If you're having trouble locating a destination on Chinadaily.com.cn, try visiting the Chinadaily home page

Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
)   Print This Article    E-mail  
 

   
Copyright 1995-2007. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form.
Note: Browsers with 1024*768 or higher resolution are suggested for this site.
Registration Number: 20100000002731