“What we celebrate today and what makes us especially proud is the growth of the Hyundai family which now extends to 10 million satisfied customers around the world,” Hyundai Motor Co. Vice Chairman and CEO Kim Dong-Jin told an assembled crowd of employees, domestic journalists, government officials and senior executives representing Korea’s leading automaker and its suppliers.

“Last year, for the first time, Hyundai Motor Co. saw its overseas sales pass the one million-a-year mark, a feat second only to Toyota in volume terms,” Vice Chairman Kim explained.

“Today, Hyundai Motor Co. employs, directly and indirectly, some one million people worldwide and conducts business with nearly 2000 local and overseas suppliers. And with foreign exchange earnings of $US10 billion last year, Hyundai Motor Co. is a major contributor to the growth and development of the Korean economy, as it has been since its establishment in 1967.

Between 1976 and 2003, Hyundai Motor Co.’s exports have skyrocketed from $US3.1 million to $US12 billion, the latter figure accounting for five percent of Korea’s total exports that year.

By investing in continuously upgrading its technology, the expansion of its knowledge base and the cultivation of new markets even during economically challenging times such as the ‘70s and ‘80s oil shocks and the 1997 Asian financial crisis, Hyundai Motor Co. has also emerged as the unquestioned leader of the Korean automotive industry.

Worldwide acceptance of the Hyundai brand has grown commensurately with the strides in quality which have been spearheaded by the Quality First campaign initiated by Chairman Chung Mong-Koo. Citations from J.D. Power & Associates, Strategic Vision, AutoPacific and other independent arbiters of automotive quality attest to the huge gains Hyundai has realized in the quality, reliability and appeal of its vehicles.

The number of export markets have grown in step with the increase in exports. In 1980, Hyundai vehicles were sold in just 38 countries but the number has grown to 193 with Iraq, Afghanistan and Tunisia accounting for the most recent additions. At the same time, the worldwide total of dealers has surpassed 5000 while new export bases have been established through Hyundai Motor Co. manufacturing subsidiaries in India and Turkey which now serve markets worldwide.

It took Hyundai Motor Co. 22 years to pass the five million export milestone which was reached in 1998. But the second five million was realized in just 5.5 years. Set end-to-end, the 10 million vehicles would form a line 45,000km in length—surpassing the circumference of the globe. Even more remarkable is the fact that Hyundai managed to reach this milestone in just 28 years since filling its very first overseas sale, a modest order for six Pony subcompacts for a taxi fleet customer in Ecuador.

By far, the most popular Hyundai export model has been the Accent which accounted for 2.1 million of the 10 million total followed by Elantra which in its three iterations made up 1.72 million. Since 2000, Hyundai has seen a steady increase in the overseas demand for higher value-added vehicles such as the Sonata and Santa Fe, models which have helped upgrade the brand image of Hyundai.

To mark this special occasion, a number of citations and plaques of appreciation were presented by Vice Chairman Kim Dong-Jin. Recipients included local suppliers who have met the company’s uncompromising quality standards and who have played a major role in helping Hyundai Motor Co. reach this major milestone. Plaques were also handed out to outstanding Hyundai employees in the production, quality control, supply, R&D, marketing and overseas sales departments.

First half 2004 profit down

Meanwhile, Hyundai also announced that its 2004 first half net income fell by 1.6 percent y-o-y to 973 billion won ($US 832 million) on revenues 13.4 trillion won ($US 11.45 billion) as sluggish domestic demand, heavier marketing expenses in the home market and escalating commodity prices squeezed profitability.

Unit sales for the period touched 794,039 down 5.8 percent y-o-y while exports rose 5.4 percent to 520,864 units buoyed by brisk demand in the USA, Europe and China where sales were up 2.8 percent, 20.4 percent and 172.3 percent respectively. Domestic sales however fell by 21.6 percent to 273,175 units. Operating profit slipped by 6.7 percent to 1.1738 trillion won.